Target forecast stronger-than-expected annual sales and profit on Tuesday, signaling early progress under CEO Michael Fiddelke’s strategic overhaul.
Shares of Target rose 4% in premarket trading, offering relief after four consecutive years of declines that trailed rivals, including Walmart.
The Minneapolis-based retailer has leaned heavily on discretionary categories, including apparel and home furnishings, which account for nearly 30% of annual revenue.
However, persistent economic uncertainty has weighed on consumer spending, turning those higher-margin segments into a prolonged drag on overall performance.
Fiddelke is prioritizing store remodels, sharper pricing and digital expansion to reinvigorate traffic and restore sustainable growth.
He cited a healthy sales increase in February as a milestone, reinforcing confidence in the company’s recovery strategy and operational momentum.
Target expects 2026 net sales to grow 2%, topping market estimates of 1.76%, according to LSEG data.
The company projected full-year earnings per share between $7.50 and $8.50, above analysts’ expectations of $7.67, underscoring renewed profit outlook strength.
