While still in early stages, Target’s efforts to revitalize the business appear to be paying off.
The retailer reported its first quarter of net sales growth after at least six quarters of year-over-year declines. Net sales grew 6.7% from the first quarter of 2025 to the first quarter of 2026.
“We’re encouraged that this top-line growth was broad-based, with growth across both stores and digital channels, led by traffic, net sales increases in all six of our core merchandise categories, broad-based strength across all guests and regions, and momentum around both seasonal events and everyday moments,” Target CEO Michael Fiddelke told reporters on Tuesday ahead of the earnings announcement.
This comes as the company says it invested hundreds of millions of dollars in payroll and store technology, as well as guest experience training, for more than 300,000 team members in the first quarter. The company opened seven new stores in the first quarter, including its 2,000th location, and plans to open more than 30 total new stores this year.
Fiddelke said the company is confident it is on the right path in turning its financial performance around, as it is seeing positive response from guests in areas it has been working to change since he took the top job. For example, Fiddelke said the company saw sales growth in baby and kids in the back half of the quarter after refreshing the assortment and introducing a new baby boutique in 200 stores.
