Target books strongest sales growth in 4 years with customers buying
into refreshed lineup
[May 21, 2026] By
ANNE D'INNOCENZIO
NEW YORK (AP) — Target reported the largest jump in comparable sales in
four years Wednesday, but a cautious outlook overshadowed convincing
evidence that changes under the company's new CEO are resonating with
customers.
Customers spent money across all of Target’s main merchandising
categories and helped deliver better-than-expected sales. Comparable
sales — those coming from stores and digital channels operating for at
least 12 months, rose 5.6% in the three-month period ended May 2. It was
the biggest gain since early 2022, and the first positive read after
three consecutive quarters of negative comparable sales.
Target raised its annual revenue outlook, saying it expected momentum to
continue the rest of the year. Yet the upgraded sales expectations were
still below the pace of the first quarter and investors reacted
negatively.
Shares fell 5% Wednesday.
CEO Michael Fiddelke, a 20-year company veteran who took over in
February, said he remained guardedly optimistic given where the company
is in its operational overhaul.
“We’re encouraged to see a strong guest response so far,” Fiddelke said,
adding: “We’re maintaining a cautious outlook given the work we know we
have in front of us and ongoing uncertainty in the macroeconomic
environment.”
In March, Fiddelke unveiled a $6 billion plan to reverse three straight
years of sales declines. Target said it would remodel stores as part of
an attempt to reclaim its reputation for stylish clothing on a budget,
while it improved staffing and worker training.
New collaborations with labels like Roller Rabbit, an apparel and home
goods brand known for its whimsical, block-print designs, resonated with
shoppers, according to Target.
Target is one of the first big retailers to report financial results and
industry analysts are watching closely to determine whether surging
gasoline prices due to the Iran war have altered consumer behavior.
The chain was struggling long before the U.S. and Iran attacked Iran in
February, however. Customers complained of disheveled stores that lacked
the fashionable yet affordable niche that had earned Target the nickname
“Tarzhay.”
Fiddelke reshuffled the leadership team at Target and on Tuesday, Target
named a former Walmart executive as its new head of supply chain,
another problematic area.
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Target CEO Michael Fiddelke speaks at Target's Financial
Community Meeting at Target headquarters in Minneapolis, Tuesday,
March 3, 2026. (AP Photo/Tom Baker, File)
 Some of Target's problems were
self-inflicted. Its decision to roll back diversity, equity and
inclusion initiatives led to protests and boycotts. And this winter,
Target stores became another flashpoint with a federal immigration
crackdown in its own hometown of Minneapolis.
Fiddelke acknowledged in an interview with The Associated Press in
early March that boycotts had taken a toll, but said this week that
increased store traffic in the first quarter was broad-based. He
noted that more shoppers are picking Target more often, and “that’s
a positive sign.”
Analysts, however, say Target's first-quarter performance offers a
positive sign for the company.
Neil Saunders, managing director of GlobalData Retail, wrote that
the results “represent an early win for Michael Fiddelke and his
team.”
Saunders believes Target's lackluster sales had more to do with
failing on execution than being caught up in cultural crosshairs
like DEI.
“As important as that matter is, and as much as it does have some
impact, it has never been the main issue,” Saunders wrote.
Target posted first-quarter earnings of $781 million, or $1.71 per
share, for the three-month period ended May 2. That easily topped
the $1.47 per share that analysts had expected, according to FactSet,
but it was down from $1.04 billion during the same time last year.
Net sales rose 6.7% to $25.44 billion, also topping expectations.
For the full year, Target said it expected earnings per share near
the high end of $7.50 to $8.50, the guidance it offered in March.
Analysts are expecting $8.12 per share for the year, according to
FactSet.
Target said it now expects net sales growth to be up 4% for the
year, up from the previous forecast of 2%. That would bring sales to
$108.97 billion.
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