Day: November 19, 2025

• Target cautioned that the critical fourth quarter sales will likely come in below last year’s.
• The retailer will invest an additional $1 billion toward an effort to refresh its store fleet. It’s also launching a ChatGPT integration.
• Incoming CEO Michael Fiddelke said he is focused on getting “back to growth as quickly as possible.”

Target is betting a billion-dollar facelift will improve its fortunes after a rough couple of years.

The Minneapolis-based retailer posted its earnings on Wednesday, its 10th quarter in the past 12 with negative or flat comparable sales, and cautioned that the critical fourth quarter will likely be down as well.

“We’re far from satisfied with our current results, and we won’t be satisfied until we’re operating at our full potential,” incoming CEO Michael Fiddelke said in a call with reporters.

Third-quarter comparable sales declined 2.7%, coming in below analysts’ estimate of -2.06%. Adjusted earnings per share of $1.78 came in above expectations of $1.73.

Fiddelke attributed much of the quarter’s shortfall to a sharp drop-off in September, while August and October were relatively flat. Foot traffic data from Placer.ai shows a similar trend during the period.

Target will increase its annual capital expenditures from $4 billion to $5 billion to invest in remodeling and refreshing its store fleet, Fiddelke said, including the biggest changes to its merchandise assortment and floor plans that the company has seen in years.

Heading into the holidays, Fiddelke and Chief Commercial Officer Rick Gomez said shoppers continue to be stretched thin and making trade-offs wherever they can — a theme that has persisted in recent years across many retailers.

Now, Gomez said, Target shoppers are focusing their holiday spending on items they see as core to the spirit of the occasion, choosing Halloween costumes and candy over decor, for example.

“As we go into Christmas and the holidays, we think the consumer will prioritize what goes under the tree versus what goes on the tree,” he added.

The chain has weathered declines in both the number of transactions and the size of those transactions, and Fiddelke said improving the in-store experience is key to turning those trends around.

Still, as economic pressures such as inflation, tariffs, and layoffs weigh on shoppers’ minds, Target has found itself falling behind its more value-focused competitors like Walmart and Costco. Target’s stock price has declined around 35% since the start of the year, compared to Walmart’s 12.6% increase and Costco’s 1.6% decrease.

“Prices need to be sharp,” Fiddelke said. “The consumer is looking for great price, but we know that our lane — what makes Target uniquely special — is pairing that with incredible product.”

The retailer also announced an app integration with ChatGPT that will roll out in beta next week.

“We expect to be one of the first retailers on OpenAI platforms to offer the purchase of multiple items in a single transaction, offer fresh food products on the platform, and the ability to choose drive-up and pick-up fulfillment options,” Fiddelke said.

Once the excitement of the holiday shopping season is over, Fiddelke will have his work cut out for him as he takes the helm from outgoing CEO Brian Cornell on February 1.

All of it boils down to one goal: “Target back to growth as quickly as possible.”