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

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

Mar. 3, 2026 at 4:48pm

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Target reported another quarter of declining sales and profits, as the retailer struggles to regain its footing with customers contending with higher prices. However, the company offered a solid annual profit outlook that was better than Wall Street projections, and said it believes net sales will grow every quarter this year. Target also said comparable-store sales rose to start the current quarter, and its shares jumped more than 4% before the opening bell.

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 facing pressure from protests and boycotts over its diversity, equity and inclusion initiatives, as well as a volatile economic and political environment.

The details

Target earned $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, during the year-ago period. Sales fell 1.5% to $30.45 billion during the latest period. For the full year, sales fell nearly 2% to $104.78 billion. Comparable sales - sales at established stores and online channels - fell 2.5%, following a 2.7% dip in the fiscal third quarter. The latest figure marks 11 quarters out of the past 13 that Target has posted either declines or flattish growth for this measure.

  • 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 stepped down last month.

Walmart

A major competitor of Target that 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

Fiddelke is expected to reveal details about his plans to turn around Target on Tuesday during the company's annual meeting in Minneapolis.

The takeaway

Target's struggles highlight the challenges facing retailers in the current economic and political environment, as they navigate issues like inflation, competition, and pressure from customers and activists. Fiddelke's leadership will be crucial in determining whether Target can regain its former dominance in the industry.