Target Reports Another Quarter of Declining Sales, But Sees Improvement Ahead

The retailer struggles to regain footing as customers contend with higher prices, but offers solid annual profit outlook.

Mar. 3, 2026 at 6:18pm

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Target reported another quarter of declining sales and profits, as the retailer continues to face challenges in regaining its footing with customers dealing with higher prices. However, the company offered a solid annual profit outlook that exceeded Wall Street's projections, and said it expects net sales to grow every quarter this year. Target also noted that comparable-store sales rose to start the current quarter.

Why it matters

Target's performance underscores the challenges faced by new CEO Michael Fiddelke, who took over last month. Investors are eager for Fiddelke to reveal details about his plans to turn around the company and restore its former dominance in affordable chic retail. Target is also navigating a volatile economic and political environment, including pressure over its diversity and inclusion initiatives, as well as competition from rivals like Walmart.

The details

Target reported earnings of $2.30 per share, or $1.05 billion, for the three-month period ended Jan. 31, compared to $2.41 per share, or $1.10 billion, in the year-ago period. Adjusted earnings per share was $2.44. Sales fell 1.5% to $30.45 billion during the latest period, and fell nearly 2% to $104.78 billion for the full year. Comparable sales, a key metric, fell 2.5%, marking 11 quarters out of the past 13 that Target has posted declines or flat growth.

  • Target reported earnings for the three-month period ended Jan. 31, 2026.
  • Target's new CEO, Michael Fiddelke, took over the company last month.

The players

Michael Fiddelke

The new CEO of Target, a 20-year company veteran who succeeded longtime CEO Brian Cornell last month.

Brian Cornell

The former CEO of Target, who led the company for several years before being succeeded by Michael Fiddelke.

Walmart

A major competitor of Target, which has stepped up its focus on fashion and other goods, gaining market share particularly among households with annual income above $100,000.

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What’s next

Investors are eager to hear more details about CEO Michael Fiddelke's plans to turn around Target and restore its former dominance in affordable chic retail.

The takeaway

Target's struggles underscore the broader challenges facing the retail industry, as companies navigate a volatile economic and political environment, heightened competition, and changing consumer preferences. The company's new leadership will need to make strategic changes to regain its footing and appeal to its customer base.