Target raises full‑year sales forecast

Target raised its full-year sales growth forecast on May 20 after reporting first-quarter results that beat Wall Street expectations and showed its strongest comparable sales growth in several years. The Minneapolis-based retailer said net sales rose 6.7% to $25.4 billion in the quarter ended May 2, while comparable sales increased 5.6%. Target said the stronger quarter prompted it to lift its annual sales outlook for the first time in two years. (corporate.target.com) Michael Fiddelke, who became chief executive earlier this year, said on the earnings call that the company saw “broad-based” strength across geographies and merchandise categories. (corporate.target.com) The results follow a period of weaker traffic and declining sales that had pressured the retailer through much of the past year. ### How much did Target change its forecast? Target said it now expects about 4% sales growth for fiscal 2026, up from its earlier forecast of about 2%. Reuters reported the increase was the company’s first full-year sales outlook raise in two years. (corporate.target.com) The company also said first-quarter GAAP and adjusted earnings per share were $1.71. That compared with prior-year GAAP earnings per share of $2.27 and adjusted earnings per share of $1.30, according to its earnings release. (wsau.com) ### Which numbers stood out in the quarter? Target said comparable sales rose 5.6%, driven in part by a 4.4% increase in traffic. Yahoo Finance’s earnings-call summary said net sales were $25.4 billion and described the comparable-sales gain as the company’s first positive comp in five quarters. (wsau.com) For the three months through May 2, Reuters reported sales increased across all six of Target’s core merchandising categories, compared with declines in five categories a year earlier. Reuters also said executives pointed to double-digit growth in toys after the company priced more products below $10. (corporate.target.com) ### What did management say about shoppers? Michael Fiddelke said Target saw “broad-based” consumer strength across regions and product categories, according to Reuters and other earnings-call coverage. (finance.yahoo.com) That language marked a more upbeat tone than some analysts had expected heading into the report. CNBC had framed the quarter as a test of whether Target could recover from a sales slump and weaker customer traffic. After the results, CNBC reported that revenue and earnings both exceeded Wall Street estimates as shoppers returned. (devdiscourse.com) ### What is behind the turnaround effort? Reuters said the stronger results suggested Fiddelke’s investment-heavy turnaround strategy was beginning to show through. The company has been working to revive demand after a prolonged slowdown in store traffic and discretionary spending. (wsau.com) Target’s investor site says the company outlined a broader growth plan in March 2026. That plan included efforts tied to merchandising, pricing and longer-term growth initiatives, and the first-quarter materials are now posted alongside that strategy update. (cnbc.com) ### What comes next for investors? Target posted its first-quarter earnings materials on May 20 through its investor relations site and SEC filing system. The company said investors and media could access the first-quarter earnings conference call and related presentations through its investor page. (wsau.com) The next formal checkpoint will be Target’s fiscal 2026 second-quarter results, which the company will add to the same investor materials page when scheduled. As of May 21, the latest posted package on that page is the first-quarter 2026 report released May 20. (corporate.target.com)