Target Posts Another Quarter of Slipping Sales, Offers Upbeat Annual Profit Outlook for 2026

Retailer struggles to regain footing amid high inflation, shopper boycotts, and operational challenges

Mar. 3, 2026 at 3:25pm

Got story updates? Submit your updates here. ›

Target reported another quarter of declining sales and profits as it works to regain its footing with customers facing higher prices. However, the retailer offered a profit outlook that topped Wall Street expectations and signaled quarterly sales growth ahead. The Minneapolis-based company cited a mix of factors contributing to its weakness, including untidy stores, lackluster merchandise, competition from rivals like Walmart, and political and social controversies.

Why it matters

Target's struggles underscore the broader challenges facing the retail industry, as consumers continue to feel the pressure of higher costs amid economic uncertainty. The company's performance and its efforts to turnaround its business will be closely watched by investors and industry analysts as an indicator of the broader health of the sector.

The details

Target reported earnings of $2.30 per share, or $1.05 billion, down from $2.41 per share, or $1.10 billion, a year earlier. Adjusted earnings per share were $2.44 for the latest quarter. Sales fell 1.5 percent to $30.45 billion for the period, and full-year sales declined nearly 2 percent to $104.78 billion. The company noted that comparable-store sales, which measure sales at established stores and online channels, fell 2.5 percent in the most recent quarter, following a 2.7 percent decline in the fiscal third quarter. Target said it expects net sales to rise about 2 percent for the year, to roughly $106.88 billion, and forecast earnings per share in a range of $7.50 to $8.50.

  • The results are for the three months ended Jan. 31, 2026.
  • Target reported sales growth in food and beverage, beauty and toys for the latest quarter.
  • The company noted that comparable sales rose to start the current quarter, and that customer traffic and sales accelerated in the final two months of the period.

The players

Target

A major American retail corporation that operates a chain of discount department stores and is headquartered in Minneapolis, Minnesota.

Michael Fiddelke

The new CEO of Target who took over the role last month and is expected to lay out details of his turnaround strategy during the retailer's annual meeting.

Neil Saunders

The managing director of GlobalData, who provided commentary on Target's performance.

Joe Feldman

The senior managing director and assistant director of research at Telsey Advisory Group, who provided commentary on Target's challenges.

Got photos? Submit your photos here. ›

What they’re saying

“Target is struggling to show up for customers in a consistent and compelling way. There are too many out of stocks, too little inspiration in ranges, too much muddle and mess in stores. And all these things are eroding sales, as evidenced by the 3.9% fall in store comparables over the period.”

— Neil Saunders, Managing Director, GlobalData

“Can Target turn things around? It won't be plain sailing, as issues like investment at a time of compressed profit will need to be squared. And customer trust will need to be rebuilt. However, goodwill for the Target brand remains, and if customers are presented with something better, they will, over time, respond positively.”

— Neil Saunders, Managing Director, GlobalData

“Shopper boycotts tied to the company's DEI decisions and its perceived response to ICE enforcement have cut into sales, but Mr. Fiddelke 'seems to be willing to make changes to improve its operations'.”

— Joe Feldman, Senior Managing Director and Assistant Director of Research, Telsey Advisory Group

What’s next

Target's new CEO, Michael Fiddelke, is expected to lay out details of his turnaround strategy during the retailer's annual meeting.

The takeaway

Target's struggles reflect the broader challenges facing the retail industry, as consumers continue to feel the pressure of higher costs and economic uncertainty. The company's efforts to turn around its business, including changes to its operations, merchandise, and brand, will be closely watched as an indicator of the sector's health.