US retailer Target has reported lower third-quarter sales for the period ended 1 November 2025, and has outlined plans to increase investment in stores and digital operations in 2026.  

Net sales fell 1.5% to $25.27bn as the retailer works to halt three consecutive quarters of declining comparable sales.  

In August 2025, Target announced the appointment of Michael Fiddelke as its new CEO, effective from 1 February 2026.  

In October, the company moved to cut 1,800 corporate positions as part of efforts to reset the business. 

Target will invest $1bn more in 2026 as part of a $5bn capital plan to expand and remodel stores and enhance digital fulfilment capabilities. 

Comparable sales dropped 2.7%, while digital comparable sales rose 2.4% on strong same-day delivery growth through Target Circle 360.  

Merchandise sales declined 1.9% and non-merchandise sales increased 17.7%. 

Operating income fell 18.9% to $948m, or $1.1bn excluding severance and asset-related charges. Net earnings fell 19.3% to $854m.   

Gross margin was 28.2%, slightly below 28.3% in 2024.  

On-shelf availability for key items has improved more than 150 basis points year-on-year, supported by a market fulfilment model now operating in 35 additional markets. 

Next-day delivery is now available to more than half of the US population.

Target reaffirmed expectations for a low-single digit sales decline in the fourth quarter and cut the top end of its annual earnings forecast.  

It now expects generally accepted accounting principles earnings per share (EPS) of $7.7 to $8.7 for the full year, with adjusted EPS between $7 and $8. 

Fiddelke stated: "Thanks to the incredible work and dedication of the Target team, our third quarter performance was in line with our expectations, despite multiple challenges continuing to face our business. 

"As we head into the all-important holiday season, our team is well-prepared and ready to serve our guests with the great products, value, and inspiration they expect from Target.  

“At the same time, we continue to focus on the important work to deliver on our three key priorities: solidifying our merchandising authority, elevating the shopping experience, and further harnessing the power of technology to move at greater pace and consistency, all in support of a return to sustainable growth."