Target (TGT) posted lackluster fourth quarter and full-year results on Tuesday, capping off what the company called a “challenging year” as new CEO Michael Fiddelke looks to turn around results for the struggling retailer.
Target said Tuesday its same-store sales fell 2.5% during the holiday quarter and 2.6% for the full year. Both declines were in line with Wall Street expectations, according to Bloomberg forecasts.
In the fourth quarter, its in-store sales fell 3.9% while digital sales rose 1.9%. Revenue in the quarter fell 1.5% from last year to $30.5 billion, above the $29.9 billion that was expected. Adjusted earnings of $2.30 also beat the $2.14 the Street expected.
Fiddelke took the reins as CEO from Brian Cornell on Feb. 1.
“I’m incredibly proud of how our team navigated through a challenging year in 2025, as they focused on serving our guests while positioning our business for profitable growth in 2026 and beyond,” Fiddelke said in a statement. He added the company saw a “healthy, positive sales increase” last month.
In 2026, it expects adjusted earnings in the range of $7.50-$8.50; last year, the company’s adjusted earnings fell 8.2% to $8.13. The company also expected revenue to grow 2% over last year, when revenue totaled $104.8 billion.
“This expectation reflects a small increase in comparable sales, with new store and non-merchandise sales contributing more than one percentage point of growth,” the company said.
Last year, Target added 17 stores, bringing its total to 1,995.
In February, Target said it planned to cut 500 jobs — including 100 at the store district level and 400 across its supply chain — to reinvest in its store employees, per a memo obtained by Yahoo Finance. Last fall, the company cut 1,800 jobs, or about 8% of its corporate workforce, as it looked to streamline its structure.
Brooke DiPalma is a reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.