Target's new CEO bets on growth after tough year
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Target released its quarterly earnings March 3, 2026. Photo: David Paul Morris/Bloomberg via Getty Images
Target's new CEO Michael Fiddelke is using his first earnings report at the helm to confront another quarter of falling sales — and promise a return to growth.
Why it matters: A 2.5% drop in fourth-quarter comparable sales capped a difficult year for Target, raising the stakes for Fiddelke to stabilize traffic and deliver the steady growth he's forecasting for 2026.
Driving the news: Net sales fell 1.5% in the quarter to $30.5 billion, while full-year revenue declined 1.7% to $104.8 billion, the Minneapolis-based retailer said.
Yes, but: Not all categories were weak. Food and beverage, beauty and toys posted growth, while same-day delivery rose more than 30% — a key battleground as rivals Walmart and Amazon push to win convenience-focused shoppers.
- Non-merchandise revenue — including advertising, marketplace and membership — jumped more than 25%, underscoring Target's push into higher-margin revenue streams.
Meanwhile, sales and traffic trends improved in the final two months of the quarter, including a positive sales increase in February, the company said.
Fiddelke framed 2025 as a transition year in Tuesday's release.
- "Our team is firmly focused on writing Target's next chapter of growth," he said, pointing to investments in merchandising, store experience and technology.
The big picture: Target's shares have fallen nearly 35% over the past five years as diversified format competitors like Walmart and Costco have rallied, reflecting investor skepticism about the retailer's execution and growth prospects.
- Fiddelke officially took over Feb. 1 — one day after the quarter ended Jan. 31 — succeeding Brian Cornell, who led Target for more than 11 years.
What's next: Target is guiding for roughly 2% net sales growth in 2026 and expects sales to grow in every quarter of the year.
- The company expects first-quarter earnings to be flat to slightly up from last year, with stronger growth in the back half of 2026.
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