Target Q3 Earnings Show Continued Weakness
Target Q3 earnings show a multi-year sales slump as the retailer trimmed full-year guidance and will invest in stores, tempering positioning.
KEY TAKEAWAYS
- Third-quarter net sales fell 1.5% to $25.3 billion.
- Management trimmed full-year earnings guidance, citing volatile consumer demand.
- Company committed an additional $1 billion to refresh stores and warned Q4 sales likely below year-ago.
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Target Corporation’s third-quarter earnings on November 19, 2025, revealed ongoing sales weakness as net sales fell 1.5% year over year to $25.3 billion. The company trimmed its full-year earnings guidance amid volatile demand and plans additional spending to refresh stores ahead of the holiday quarter, the company said in a press release.
Q3 Results and Guidance
Target reported third-quarter net sales of $25.3 billion, down 1.5% from the same period in 2024. The results were slightly better than many expected, but management lowered full-year earnings guidance, citing volatile consumer demand. The company also forecasted another annual sales decline in 2025, extending a multi-year slump.
Bank of America had projected adjusted earnings of $1.67 per share and a 1% decline in comparable-store sales for the quarter, both below consensus estimates.
Store Investment and Outlook
Target plans to invest an additional $1 billion to refresh its store fleet as it seeks to boost traffic during the critical holiday season. Despite this investment, management cautioned that fourth-quarter sales will likely fall short of last year’s level, tempering near-term revenue expectations.
This combination of increased spending and lowered guidance highlights the challenges Target faces in stabilizing sales and margins as it enters the holiday quarter.
Quote
“Third quarter net sales were $25.3 billion, 1.5 percent lower than 2024.” — Target Corporation
