(Corrects company ticker symbol in paragraph 1) March 3 (Reuters) – Target’s new CEO Michael Fiddelke promised a return to annual sales growth and issued an upbeat profit outlook, signalling a turnaround push at the embattled retailer. Shares of the Minneapolis-based retailer were up 5.5% in trading before the bell. They have fallen for four […]
Business
Target’s new CEO signals turnaround with upbeat outlook
Audio By Carbonatix
(Corrects company ticker symbol in paragraph 1)
March 3 (Reuters) – Target’s new CEO Michael Fiddelke promised a return to annual sales growth and issued an upbeat profit outlook, signalling a turnaround push at the embattled retailer.
Shares of the Minneapolis-based retailer were up 5.5% in trading before the bell. They have fallen for four straight years, lagging rivals such as Walmart.
Under Fiddelke, Target is focusing on revamped merchandising, sharper pricing and store‑experience upgrades to coax shoppers back. The company had pledged about $1 billion more in 2026 in new stores, remodels and an improvement in its digital business.
“Target saw a healthy, positive sales increase in February, serving as an important milestone on our path back to growth this year, and reinforcing my confidence in the momentum we’re building and the future we’re creating together,” Fiddelke said.
The company expects 2026 net sales growth of 2%, its first rise after three years, compared with the expectations of a rise of 1.76%, according to data compiled by LSEG.
It projected full-year earnings per share in the range of $7.50 to $8.50, largely above estimates of $7.67 per share.
Target has largely relied on discretionary categories such as apparel and home furnishing to drive nearly 30% of its annual sales, but the business has become a persistent drag as uncertain economic conditions prompt shoppers to curb their spending habits.
The company’s investor day later today is expected to give investors an early signals on how the new leadership team plans to sharpen merchandising and store execution, and outline its strategy for the beauty business with the Ulta partnership contract due to expire in August 2026.
Comparable sales declined 2.5% for the three months ended January 31, above average analysts’ estimate of a 2.4% drop, while adjusted earnings of $2.44 per share handily beat estimates of $2.16.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Anil D’Silva)