Sales target fall 2.5% in holiday quarter to cap ‘challenging’ 2025 as new CEO Michael Fiddelke takes over

target (TGT) posted lackluster fourth-quarter and full-year results on Tuesday, capping what the company called a “challenging year” as new CEO Michael Fiddelke looks to turn around the struggling retailer’s bottom line.

Target said Tuesday that its same-store sales fell 2.5% in 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 store sales fell 3.9%, while digital sales rose 1.9%. Revenue for the quarter fell 1.5% from a year ago to $30.5 billion, beating expectations of $29.9 billion. Adjusted earnings of $2.30 also beat the $2.14 the Street was expecting.

Fiddelke took over as CEO from Brian Cornell on February 1.

“I am 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 that the company saw a “healthy and positive increase in sales” last month.

In 2026, he expects adjusted earnings in the $7.50-$8.50 range; last year, the company’s adjusted earnings fell 8.2% to $8.13. The company also expected revenue to grow 2% from 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, for a total of 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, according to a memo obtained by Yahoo Finance. last fall, the company cut 1,800 jobsor around 8% of its corporate workforce, as it sought to rationalize its structure.