Target posts lower 2025 earnings as Q4 sales dip

US retailer Target reported weaker profitability for its 2025 fiscal year, alongside a humble diminution successful fourth-quarter (Q4) sales, adjacent arsenic respective merchandise categories and non-merchandise gross lines grew.

In the 4th ended 31 January 2026, nett income declined 1.5% to $30.45bn from $30.91bn successful the prior-year period.

Comparable income declined 2.5%, reflecting a 3.9% driblet successful comparable store sales, partially offset by a 1.9% emergence successful comparable integer sales.

Net net declined 5.2% to $1.04bn from $1.10bn successful the aforesaid play past year.

Basic net per stock fell 4.4% to $2.31 portion diluted net per stock (EPS) declined 4.5% to $2.30.

Operating income reached $1.38bn, down 5.9% from $1.46bn a twelvemonth earlier.

The operating income borderline complaint was 4.5%, compared with 4.7% successful 2024.

Quarterly gross borderline improved to 26.6%, up from 26.2% successful the anterior year, supported by reduced inventory shrink and decreased proviso concatenation and integer fulfilment costs, on with higher advertizing and different revenue.

These gains were partially offset by accrued merchandise and import costs.

Sales maturation successful the 4th was led by nutrient and beverage, quality and toys, portion show successful essentials and location improved compared with the 3rd quarter.

Non-merchandise gross roseate by much than 25%, driven by rank income that much than doubled year-on-year, double-digit enlargement successful the Roundel advertizing business, and marketplace maturation exceeding 30%.

Same-day transportation done Target Circle 360 accrued by much than 30%.

For the afloat year, nett income declined 1.7% to $104.78bn from $106.56bn successful 2024, reflecting a 2.6% driblet successful comparable sales, partially offset by income from caller stores and higher non-merchandise revenue.

Net net fell 9.4% to $3.70bn from $4.09bn portion operating income declined 8.1% to $5.1bn.

Target Corporation CEO Michael Fiddelke said: “Our squad is firmly focused connected penning Target's adjacent section of growth, rooted successful strengthening our merchandising authority, delivering an elevated and differentiated buying experience, advancing our usage of technology, and continuing to service and put successful our squad and communities.”

Looking ahead, the institution expects nett income maturation of astir 2% successful 2026 and anticipates its full-year operating income borderline complaint to beryllium 20 ground points higher than the 4.6% adjusted operating borderline recorded successful 2025.

"Target posts little 2025 net arsenic Q4 income dip" was primitively created and published by Retail Insight Network, a GlobalData owned brand.

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