Sign at the entrance to a Target store in Venice, Florida.
Erik McGregor | Light flare | Getty Images
Target plans to report its holiday quarter results and share its expectations for the coming year Tuesday morning, as its new CEO lays out his strategy and tries to persuade Wall Street that the big-box retailer can end its sales decline.
The Minneapolis-based discounter will hold an investor meeting at its headquarters, led by CEO Michael Fiddelke, the company veteran who took over in February, along with other Target executives.
Here’s what Wall Street expects for the big-box retailer’s fiscal fourth quarter, based on a survey of analysts by LSEG:
- Earnings per share: $2.15 expected
- Income: $30.48 billion expected
These results would be lower than those reported by Target a year ago. The company recently reaffirmed its outlook for the fourth quarter, saying it expects sales to decline by a low single-digit percentage and expects its full-year 2025 guidance for adjusted earnings per share to be between $7 and $8. In the prior fiscal year, Target reported adjusted earnings per share of $8.86.
Target is trying to turn things around after several years of disappointing results, driven by a combination of corporate missteps and economic factors. Its annual turnover has remained roughly stable for four years, following a significant increase in annual turnover during the Covid pandemic.
Customer traffic to stores and the company’s website has declined for three consecutive quarters, and the average amount spent during those visits has also declined. Target cut 1,800 corporate jobs in October, marking its first major layoff in a decade.
Some Target customers told CNBC they were shopping elsewhere after noticing changes such as more unkempt stores and drab merchandise, or objecting to the company’s social stances, such as rolling back major diversity, equity and inclusion initiatives. The company acknowledged that backlash over its DEI decision hurt sales and led to market share losses to competitors.
Target is known for selling trend-driven clothing, home goods, seasonal items, and other discretionary merchandise that customers often buy on impulse as they browse the aisles on a “Target run.” Yet rising prices for food, utilities and other necessities, fueled by inflation and tariffs, have dampened U.S. consumers’ willingness to buy items that aren’t on their shopping lists.
Target’s results are at odds with those of retail competitors like Walmart, Costco And TJ Maxxwhich reported better sales results, attracted shoppers across income levels and saw growth in categories such as clothing and home goods, areas where Target has struggled.
In a fall interview with CNBC at Target headquarters, Fiddelke said he would prioritize restoring the company’s reputation for style and design, improving the customer experience and using technology to improve its performance.
He echoed these key goals in messages to company employees and in comments to investors.
Last month, Target announced it would invest more in store labor and cut about 500 more positions in distribution centers and regional offices. However, the company declined to say it would spend much more.
Target shares have fallen nearly 32% over the past three years, as of Monday’s close, although they are up nearly 16% so far this year. The company’s stock closed Monday at $113.17, bringing its market capitalization to $51.24 billion.