Minneapolis, March 3, 2026, 06:20 CST
- Target is projecting net sales to rise roughly 2% in 2026, with earnings per share expected in the $7.50 to $8.50 range.
- Comparable sales slipped 2.5% in the fourth quarter, but adjusted EPS climbed to $2.44.
- The company cited a jump in February sales, along with quicker gains in delivery and services.
Target shares jumped 5.5% before the bell Tuesday after the retailer projected its first yearly sales growth in several years and noted a pickup in demand late in the quarter. Reuters
Target’s fresh optimism comes just a month after Michael Fiddelke stepped in as chief executive. Investors will get more detail later Tuesday, as the company prepares to address the market following a year marked by declining sales. Target Corporation
Target faces a tough moment. The retailer’s bet on discretionary sectors like apparel and home goods has backfired lately, as consumers rein in spending there. Competitors—including Walmart—have doubled down on core essentials and price, sharpening the competitive divide. Axios
Target reported a 1.5% decline in fourth-quarter net sales, landing at $30.5 billion. Comparable sales slid 2.5%. Adjusted earnings per share hit $2.44. “Target saw a healthy, positive sales increase in February,” CFO Fiddelke said, describing it as “an important milestone” on the path back to growth. Target Corporation
The company reported a 3.9% drop in comparable store sales for the quarter, but a 1.9% gain in comparable digital sales helped cushion the decline. Sales in food and beverage, as well as beauty and toys, grew, according to the company.
Comparable sales, which exclude new and closed stores to get at real demand, have weighed on results. Target reported fourth-quarter GAAP EPS of $2.30, factoring in a 15-cent hit from non-recurring business transformation costs. The adjusted number leaves out some of those one-time items.
Target expects net sales to climb “around 2%” in 2026, with GAAP and adjusted earnings per share estimated between $7.50 and $8.50. The company is projecting an operating margin for the full year that’s roughly 20 basis points higher than its own adjusted margin for 2025. (A basis point equals one-hundredth of a percentage point.)
Target’s push into higher-margin services is picking up speed. Non-merchandise sales surged over 25%. Membership revenue? More than double. Same-day delivery connected to its Target Circle 360 program climbed above 30%.
Competition is thick here. Walmart and Amazon have both invested heavily in speeding up delivery and expanding online selection, while Target pushes to turn its stores into fulfillment centers—aiming for efficiency, but watching expenses closely.
But here’s the risk: if shoppers keep holding back on discretionary buys, Target could be forced to ramp up promos, cut prices deeper, or eat higher import and product expenses. Margins would take a hit, traffic rebound or not.
Investors want to hear details: which comes first—pricing tweaks, changes to assortment, adjustments in staffing, or upgrades to stores? And, just as important, how fast can Target translate a bump late in the quarter into consistent growth every quarter?
