Target finished out a difficult year with declining sales, but says growth is ahead

"I'm incredibly proud of how our team navigated through a challenging year in 2025. Our team is firmly focused on writing Target's next chapter of growth. Target saw a healthy, positive sales increase in February, serving as an important milestone on our path back to growth this year, and reinforcing my confidence in the momentum we're building."

"While the fourth quarter's results extend a three-year streak of flat or declining comparable sales, the company said traffic and transactions started to pick back up in December and January, and are on track to deliver net sales growth in every quarter of 2026."

"Adjusted fourth quarter earnings per share of $2.44 exceeded the Bloomberg analyst consensus of $2.13, but the outlook of less than a percentage point increase in comparable sales and first quarter EPS of $1.30 were less than Wall Street estimates."

Target experienced a 1.7% decline in total sales for fiscal year 2025, including a 1.5% quarterly drop despite new store openings and digital growth. This extends a three-year trend of flat or declining comparable sales. However, the company demonstrated resilience with fourth quarter adjusted earnings per share of $2.44, exceeding analyst expectations. CEO Michael Fiddelke highlighted positive momentum, noting traffic and transactions increased in December and January. February showed healthy sales growth, reinforcing management confidence in returning to growth throughout 2026. While forward guidance fell slightly below Wall Street estimates, Target projects net sales growth in every quarter of 2026, signaling a potential turnaround after a challenging year.

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