Target is set to announce its holiday-quarter earnings and outline expectations for the coming year during an investor meeting at its Minneapolis headquarters. Newly appointed CEO Michael Fiddelke, alongside other executives, is expected to present a strategy aimed at reversing the retailer’s ongoing sales slump.
Based on analyst projections from LSEG, Target anticipates earnings per share of $2.15 and revenues of $30.48 billion for the fiscal fourth quarter. These figures would represent a decline compared to the previous year’s performance. The company has indicated a low single-digit percentage drop in sales for the fourth quarter and projects its adjusted earnings per share for fiscal 2025 to range between $7 and $8, down from $8.86 the prior year.
Target has faced several years of stagnant sales attributed to a combination of operational missteps and economic pressures. Customer traffic in stores and online has decreased for three consecutive quarters, while average spending per visit has also declined. In October, Target laid off 1,800 corporate employees, marking its first major workforce reduction in a decade.
Feedback from customers suggests some are choosing alternative retailers due to perceptions of declining store conditions and criticism over the company’s stance on diversity, equity, and inclusion initiatives. As other retailers such as Walmart, Costco, and T.J. Maxx have reported growth in sales and attracted a wider customer base, Target has struggled, particularly in discretionary categories like apparel and home goods.
To address these issues, Fiddelke has emphasized intentions to enhance the company’s style and design reputation, improve customer experiences, and leverage technology for better performance. Last month, the company announced it would increase investments in store labor while reducing roles at distribution centers and regional offices.
Why this story matters: Target is trying to recover from several years of disappointing sales amid a competitive retail environment.
Key takeaway: The company is focusing on improving customer experience and addressing recent criticisms to regain market share.
Opposing viewpoint: Some customers have shifted their loyalty to rivals, suggesting a challenging road ahead for Target’s recovery efforts.
