Target sales fall 2.5% during holiday quarter to cap 'challenging' 2025 as new CEO Michael Fiddelke takes over

Target (TGT) posted lackluster 4th fourth and full-year results connected Tuesday, capping disconnected what the institution called a "challenging year" arsenic caller CEO Michael Fiddelke looks to crook astir results for the struggling retailer.

Target said Tuesday its same-store income fell 2.5% during the vacation 4th and 2.6% for the afloat year. Both declines were successful enactment with Wall Street expectations, according to Bloomberg forecasts.

In the 4th quarter, its in-store income fell 3.9% portion integer income roseate 1.9%. Revenue successful the 4th fell 1.5% from past twelvemonth to $30.5 billion, supra the $29.9 cardinal that was expected. Adjusted net of $2.30 besides bushed the $2.14 the Street expected.

Fiddelke took the reins arsenic CEO from Brian Cornell connected Feb. 1.

“I’m incredibly arrogant of however our squad navigated done a challenging twelvemonth successful 2025, arsenic they focused connected serving our guests portion positioning our concern for profitable maturation successful 2026 and beyond,” Fiddelke said successful a statement. He added the institution saw a "healthy, affirmative income increase" past month.

In 2026, it expects adjusted net successful the scope of $7.50-$8.50; past year, the company's adjusted net fell 8.2% to $8.13. The institution besides expected gross to turn 2% implicit past year, erstwhile gross totaled $104.8 billion.

"This anticipation reflects a tiny summation successful comparable sales, with caller store and non-merchandise income contributing much than 1 percent constituent of growth," the institution said.

Last year, Target added 17 stores, bringing its full to 1,995.

In February, Target said it planned to chopped 500 jobs — including 100 astatine the store territory level and 400 crossed its proviso concatenation — to reinvest successful its store employees, per a memo obtained by Yahoo Finance. Last fall, the institution chopped 1,800 jobs, oregon astir 8% of its firm workforce, arsenic it looked to streamline its structure.

Brooke DiPalma is simply a newsman for Yahoo Finance. Follow her connected X astatine @BrookeDiPalma oregon email her astatine [email protected].

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