Target (TGT) Q4 2025 earnings

Minneapolis – goal On Tuesday, it reported another quarter of declining revenue and customer traffic at its stores, even as the company reported stronger sales in some key merchandise categories.

The big box retailer, which is in the middle of a turnaround effort, said sales and traffic trends were up in the final two months of the holiday quarter. Sales then turned positive year over year in February, the beginning of the current quarter.

In a press release, Target CEO Michael Fedelecki called the shift “an important milestone on our return to growth this year” and said it reinforces “my confidence in the momentum we are building and the future we are creating together.”

For the current fiscal year, Target expects net sales to increase approximately 2% compared to the previous year and expects this metric to grow each quarter. The retailer said net sales growth for the year will reflect a slight increase in comparable sales. The company added that its new stores and non-merchandise sales, such as advertising and memberships, will contribute more than one percentage point to growth.

Target said it expects full-year adjusted earnings per share to range from $7.50 to $8.50. Adjusted earnings per share for the most recent full year were $7.57.

Fidelke, who He rose to the top role of the company On February 1, it will try to convince Wall Street that the retailer is on track to end its sales decline at an investor meeting Tuesday morning at its headquarters in Minneapolis.

Here’s what the company reported for its fiscal fourth quarter compared to Wall Street estimates, according to a survey of analysts conducted by LSEG:

• Earnings per share: $2.44 revised vs. $2.16 expected
• profit: $30.45 billion compared to $30.48 billion expected

The big box retailer missed Wall Street’s revenue expectations for the fourth quarter, even though analysts were already expecting weak sales. Its quarterly revenues It was down about 1.5% from $30.92 billion in the same period last year.

For four straight quarters, customer traffic through the company’s stores and website has declined.

Target’s net income for the three-month period ending January 31 fell to $1.05 billion, or $2.30 per share, compared to $1.10 billion, or $2.41 per share. A year ago. Excluding one-time expenses, including legal settlement gains and business conversion costs, Target’s adjusted earnings per share were $2.44.

The target is trying to finish Several years of disappointing results Driven by a combination of company mistakes and economic factors. Its annual sales have remained roughly flat for four years, after a big jump in annual revenue during the Covid pandemic.

Shares were down about 32% over the past three years, through Monday’s close, though they were up about 16% so far this year. The company’s shares closed on Monday at $113.17, bringing its market capitalization to $51.24 billion.

As it tries to turn its business around, Target 1,800 jobs were eliminated in companies in October, marking the first major layoffs in a decade.

some Target customers told CNBC They shop elsewhere after noticing changes such as sloppy stores and lackluster merchandise, or objecting to a company’s social attitudes, e.g. Roll back key diversity, equity, and inclusion initiatives. The company admitted Backlash to the DEI decision has hurt sales It led to losses in market share for competitors.

Target’s challenge continues to attract shoppers. Comparable sales, an industry metric that takes short-term factors such as store openings and closings and also called same-store sales, fell 2.5% year over year in the fourth quarter. This reflects a comparable sales decline of 3.9% at Target stores and a 1.9% increase across Target’s website and app.

Transactions through Target’s stores and website were down 2.9% year-over-year. The average amount customers spent during those transactions increased 0.4% year over year.

in Interview with CNBC In the fall at Target’s headquarters, Fiddelke said he would prioritize restoring the company’s reputation for style and design, improving the customer experience and using technology to boost its performance.

These key objectives were echoed in the company’s statement detailing its fourth fiscal quarter results.

“Our team is laser-focused on writing the next chapter of growth for Target, rooted in strengthening our brand authority, delivering an elevated and differentiated shopping experience, enhancing our use of technology, and continuing to serve and invest in our team and communities,” he said.

Last month, Target also announced it would do so Invest more in store workers and eliminate about 500 more jobs at distribution centers and regional offices to try to address shoppers’ concerns about out-of-stocks, long checkout lines and other store conditions. However, the company declined to disclose more money it will spend.

Target is known for selling clothing, home goods, seasonal items, and other trend-driven discretionary merchandise that customers often buy on impulse when browsing the aisles in the Target run. However, rising prices for food, utilities and other necessities, fueled by inflation and tariffs, have dampened American consumers’ willingness to purchase items not on their shopping list.

Target’s results in recent years have been at odds with those of retail rivals such as Walmart, Costco and TJX, the parent company of TJ Maxx, which posted stronger sales results, attracted cross-income shoppers and saw growth in categories like apparel and home goods, areas where Target has struggled.

Besides offering products like groceries, clothing and household goods, Target is trying to sell more advertising and membership subscriptions to customers. The company’s non-merchandise sales jumped more than 25% in the fourth quarter, driven by membership revenue that more than doubled from a year ago, double-digit percentage gains in its Roundel advertising business and more than 30% growth in the third-party marketplace.

Same-day deliveries through Target 360 Plus increased more than 30% year over year. The subscription service costs $99 per year or $10.99 on a monthly basis.