The numbers
13: Consecutive quarters by which Target has reported flat or declining gross sales. New CEO Michael Fiddelke promised a return to development in each quarter of 2026.
$30.5 billion: Net gross sales within the fourth quarter of 2025. That’s a 1.5% drop yr over yr, and a 2.5% drop when adjusted for inflation.
3.9%: The year-over-year drop in fourth-quarter comparable gross sales.
$915 million: Target’s promoting income in 2025, primarily from advert arm Roundel. During the fourth quarter, Target reported $295 million in advert income, up 55.3% from $190 million within the yr prior.
The watercooler discuss
At a monetary neighborhood assembly in Minneapolis, Target executives reported full-year and fourth-quarter 2025 earnings whereas promising massive adjustments in response to a slew of challenges the retailer has confronted over the previous couple of years, together with greater than three years of flat or falling gross sales.
Stock costs rose instantly following the monetary launch. The retailer narrowly beat analyst expectations, and buyers appeared inspired by the promise of a return to development.
While Target has but to call a brand new CMO following Lisa Roath’s transfer to chief working officer in 2024, Michelle Mesenburg was not too long ago named senior vice chairman and chief model officer. Mesenburg will oversee model technique because it pertains to buyer expertise, a Target spokesperson mentioned in an e mail.
On Feb. 10, Target introduced two different management adjustments, efficient Feb. 15. First, former chief visitor expertise officer Cara Sylvester moved into a brand new function as chief merchandising officer.
The retailer is conducting an exterior seek for a chief visitor expertise and advertising and marketing officer, a spokesperson mentioned.
The key quote
Sylvester addressed buyers straight in the course of the name to stipulate myriad adjustments that the retailer is making to its merchandising assortment. Target is bettering the manufacturing velocity of its trend traces to capitalize on developments, revamping its dwelling part, and launching Target Beauty Studio later this yr, she mentioned. Target’s in-store partnership with Ulta expires in August.