What Happened to Target Corporation?
Target Corporation has navigated a period of fluctuating sales and evolving consumer behavior, particularly from 2024 to early 2026. While facing declines in comparable sales in 2025, the company has focused on strategic investments in digital capabilities, store remodels, and its loyalty program, Target Circle. A significant leadership transition occurred in February 2026 with Michael Fiddelke taking over as CEO, signaling a renewed focus on merchandising authority, guest experience, and operational efficiency to drive future growth.
Quick Answer
Target Corporation experienced a challenging period in 2025 with declining comparable sales, attributed to cautious consumer spending in discretionary categories. In February 2026, Michael Fiddelke succeeded Brian Cornell as CEO, initiating executive leadership changes and a strategic plan focused on strengthening merchandising, enhancing the guest experience, and accelerating technology adoption. The company reported a 1.7% decline in full-year 2025 net sales but anticipates a return to net sales growth of around 2% in 2026, with modest comparable sales gains and improved operating income margins.
📊Key Facts
📅Complete Timeline13 events
Reports Strong Full-Year 2023 Earnings
Target announced its Q4 and full-year 2023 results, with full-year GAAP and Adjusted EPS up nearly 50% from 2022, reaching $8.94. Operating income margin rate improved to 5.3%.
Relaunches Target Circle Loyalty Program
The company relaunched its free-to-join Target Circle loyalty program, integrating Target Circle, Target Circle Card (RedCard), and the new Target Circle 360, aiming to boost engagement and sales.
Reports Q1 2024 Earnings with Sales Decline
Target reported Q1 2024 GAAP and Adjusted EPS of $2.03, with total sales declining 3.2% and comparable sales down 3.7%, though digital comparable sales grew 1.4%.
Achieves Return to Topline Growth in Q2 2024
Target announced Q2 2024 GAAP and Adjusted EPS of $2.57, with comparable sales increasing 2.0% and digital comparable sales growing 8.7%, marking a return to topline growth.
Q3 2024 Earnings Show Mixed Results
The company reported Q3 2024 GAAP and Adjusted EPS of $1.85, with total revenue up 1.1% but net income down 12% year-over-year, missing analyst expectations.
Q1 2025 Sales Decline Amid Challenging Environment
Target reported Q1 2025 net sales of $23.8 billion, down 2.8%, and comparable sales declined 3.8%. The quarter included a $593 million pre-tax gain from credit card interchange fee litigation settlements.
Michael Fiddelke Appointed Next CEO
Target's Board of Directors unanimously elected Michael Fiddelke, Chief Operating Officer, to succeed Brian Cornell as CEO, effective February 1, 2026. Cornell would transition to Executive Chair.
Reports Q2 2025 Earnings with Sequential Improvement
Target reported Q2 2025 GAAP and Adjusted EPS of $2.05, with net sales down 0.9% and comparable sales down 1.9%, but noted meaningful improvement in traffic and sales trends from Q1.
Q3 2025 Earnings Show Continued Sales Decline
Target announced Q3 2025 net sales were 1.5% lower than 2024, and comparable sales declined 2.7%, reflecting ongoing softness in discretionary categories.
Michael Fiddelke Officially Becomes CEO
Michael Fiddelke officially assumed the role of Chief Executive Officer, succeeding Brian Cornell.
Announces Executive Leadership Changes Under New CEO
New CEO Michael Fiddelke announced executive leadership changes, including Cara Sylvester as Chief Merchandising Officer and Lisa Roath as Chief Operating Officer, to accelerate growth plans.
Reports Q4 and Full-Year 2025 Earnings, Provides 2026 Outlook
Target reported Q4 2025 adjusted EPS of $2.44, beating expectations, despite a 1.5% decline in Q4 net sales and a 1.7% decline for full-year 2025. The company projected approximately 2% net sales growth for 2026.
Expected Q1 2026 Earnings Report
Target is expected to report its first-quarter 2026 earnings, with guidance for Q1 GAAP and Adjusted EPS to be flat to up slightly from last year's Adjusted EPS of $1.30.
🔍Deep Dive Analysis
Target Corporation has been a prominent force in American retail, but the period from 2024 to early 2026 presented a mixed financial landscape. After a strong performance in late 2023, with full-year GAAP and Adjusted EPS up nearly 50% from 2022 and operating income margin at 5.3%, the company faced headwinds. Q1 2024 saw comparable sales decline by 3.7%, though digital comparable sales grew by 1.4%, driven by same-day services like Drive Up. This trend continued into Q2 2024, where comparable sales increased by 2.0%, marking a return to topline growth, with digital comparable sales up 8.7%. The company invested $3 billion to $4 billion in 2024 for new stores, remodels, and supply chain enhancements.
However, 2025 proved more challenging. Q1 2025 saw net sales decrease by 2.8% and comparable sales decline by 3.8%, reflecting softness in traffic and basket size, particularly in discretionary categories. Despite this, digital comparable sales grew 4.7%, with same-day delivery powered by Target Circle 360 increasing by 36%. The company settled credit card interchange fee litigation, resulting in a pre-tax gain of $593 million in Q1 2025. Q2 2025 continued to show net sales down 0.9% and comparable sales down 1.9%, though traffic and sales trends improved meaningfully compared to Q1. By Q3 2025, net sales were 1.5% lower than 2024, and comparable sales declined 2.7%, with continued softness in discretionary categories offset by growth in Food & Beverage and Hardlines.
A pivotal moment arrived on August 20, 2025, when Target announced that Michael Fiddelke, then Chief Operating Officer, would succeed Brian Cornell as CEO, effective February 1, 2026. Cornell transitioned to Executive Chair of the Board. Fiddelke, a 20-year Target veteran, was tasked with navigating the company back to consistent growth. Upon assuming the CEO role in February 2026, Fiddelke immediately initiated executive leadership changes, appointing Cara Sylvester as Chief Merchandising Officer and Lisa Roath as Chief Operating Officer, to strengthen merchandising authority and elevate the guest experience.
As of April 1, 2026, Target is focused on a strategic reset under its new leadership. The company reported its Q4 and full-year 2025 earnings on March 3, 2026. Full-year 2025 net sales decreased 1.7% to $104.8 billion, with comparable sales down 2.6%. However, Q4 2025 adjusted EPS of $2.44 beat analyst expectations, and the company provided an optimistic outlook for 2026. Target expects to grow net sales by approximately 2% in 2026, including modest comparable sales gains, and projects its operating income margin rate to be about 20 basis points higher than the 4.6% adjusted rate in 2025. The company plans to invest an additional $1 billion in 2026 to support store growth, remodels, and technology upgrades, including expanding GenAI licenses for faster work. This strategy aims to leverage its digital ecosystem, including Target Circle 360, and reinforce its design-led merchandising authority to regain momentum and market share.
What If...?
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