Target reports best quarterly sales growth since 2022 under new CEO

Former Target CEO leaves behind a company in turmoil

Axios reporter Nick Halter has followed former Target CEO Brian Cornell for most of his tenure. Halter joins All Day to break down the former CEO's legacy and the state of the company.

(FOX 9) - Target is reportedly seeing a surge in sales after launching a major turnaround plan under its new CEO only a few months ago.

Target’s sales bounce back from inflation, DEI challenges

What we know:

According to its earnings report released on Wednesday, Target said comparable sales, which include both in-store and online purchases from locations open at least a year, rose 5.6% in the three months ending May 2, 2026 – the biggest quarterly gain since early 2022, and the first positive result after three straight quarters of declines.

Dig deeper:

During an earnings call, Target CEO Michael Fiddelke, who took over in February, credited growth in all six of its main merchandising categories for the strong results.

In their wake, Target also raised its annual revenue outlook, now expecting net sales growth to be up 4% for the year, compared to its previous forecast of 2%.

Fiddelke said on Wednesday that he’s "guardedly optimistic" given where the company is in its operational overhaul.

The backstory:

Target presented a $6 billion turnaround plan to investors in March that focused on remodeling stores, improving staffing and training, and "reclaiming its reputation for affordable, stylish clothing," a press release says.

Fiddelke was among 60 CEOs of Minnesota-based companies who signed an open letter in January "calling for an immediate de-escalation of tensions and for state, local and federal officials to work together to find real solutions."

At the time, Fiddelke acknowledged that recent boycotts and protests had impacted Target’s sales.

The company also faced backlash after rolling back diversity, equity and inclusion initiatives, which led to protests and boycotts over the last two years.

Target boycott not over, Minnesota activists say

Minnesota activists held a news conference to say they are continuing the boycott against Target over its rollback of DEI measures in 2025. 

Fiddelke says Target has been working to win back customers by focusing on categories where it lost market share, especially home goods and clothing, with 75% of decorative home accessories set to be new this year, according to corporate guidance.

By the numbers:

The earnings report released says that Target posted first-quarter earnings of $781 million, or $1.71 per share, compared to $1.04 billion, or $2.27 per share, a year ago. Net sales rose 6.7% to $25.44 billion, beating analyst expectations.

Target’s annual earnings outlook now expects earnings per share to end up near the high end of $7.50 to $8.50, with analysts projecting $8.12 per share for the year.

Annual sales are forecast to reach $108.97 billion, above the $107.15 billion anticipated by analysts.