Target Reports Fiscal 2025 Results
Target’s fiscal 2025 results, released for the period ending January 31, 2026, revealed that the company’s digital sales soared to 20.6% of total merchandise sales, up from 18% during pandemic peak in 2020. Notably, fourth-quarter digital sales accounted for 23.7% of merchandise, driven by a 30% year-over-year growth in same-day delivery through its Target Circle 360 loyalty program. Despite these gains, overall net sales shrank by 1.7% year-over-year to $104.8 billion, with fourth-quarter net sales also declining 1.5% to $30.5 billion.
While digital initiatives are thriving, the retailer faces headwinds in its core brick-and-mortar business, amid a challenging macroeconomic environment where customers are pulling back on discretionary spending. Management anticipates a slight net sales growth of approximately 2% for the current year, suggesting potential improvement despite ongoing challenges.
