By Rob Sabo

Target Corp. reported on March 3 slumping sales in the fourth quarter of fiscal 2025, but its shares closed up by more than 6 percent after its new CEO forecast stronger net sales in 2026.

The Minneapolis, Minnesota-based retailer reported fourth-quarter net sales of $30.5 billion, spearheaded by 30 percent growth in same-day delivery sales from its Target Circle 360 paid membership program. Net sales for the final quarter of 2025 were 1.5 percent lower than the comparable year-earlier quarter, Target said, with same-store sales dipping by 3.9 percent but digital sales rising by nearly 2 percent.

Michael Fiddelke, a 20-year Target veteran and former COO who took over as CEO effective Feb. 1, said in the report that net sales jumped in February and should rise roughly 2 percent in 2026.

“I’m incredibly proud of how our team navigated through a challenging year in 2025,” Fiddelke said.

“Our team is firmly focused on writing Target’s next chapter of growth, rooted in strengthening our merchandising authority, delivering an elevated and differentiated shopping experience, advancing our use of technology, and continuing to serve and invest in our team and communities.”

Target reported earnings of $2.30 per share for the three-month period that ended on Jan. 31. That’s a 4.5 percent dip from the comparable quarter in 2024, when it reported earnings per share of $2.41.

Target’s full-year net sales for the 12 months ending Jan. 31 were $104.78 billion, which was 1.7 percent lower than the $106.56 billion the company reported for the same period ending Feb. 1, 2025.

Despite the softer quarterly- and full-year sales, Target’s earnings per share in the quarter beat FactSet estimates of $2.16 per share on revenue of $30.46 billion.

Fiddelke in late 2025 outlined three avenues of growth for Target, including a return to offering distinct merchandise and apparel, redefining the shopping experience, and leveraging technology, including artificial intelligence named Target Trend Brain, to enhance product offerings and boost efficiency throughout its operations. In October 2025, Target announced it was slashing 1,800 jobs—about 8 percent of its workforce—at its Minneapolis headquarters.

In its fourth-quarter earnings conference call, Fiddelke said he looked to the company’s early roots as a department store as a reminder of what it does best.

“At its core, merchandising authority is about curation and playing to our strengths,” Fiddelke told industry analysts.

“Target is not an everything store. That’s not what guests want from us. They want a strong, trend-forward assortment that they can trust to deliver quality and value, and that’s exactly what we do at Target when we’re at our best.”

Target also will embark on a multi-year journey to reposition key categories such as sports, gadgets, baby, home, beauty, and toys to create a more immersive and trend-forward approach, as well as refresh floor plans across 2,000 stores, Fiddelke said.

“This will be a journey, and it starts with a lot of change in 2026, but it doesn’t stop there,” he said.

“In fact, the team is already actively planning for 2027 and beyond.”