Overview
- For the quarter ended Jan. 31, net sales fell 1.5% to $30.45 billion as adjusted EPS reached $2.44, with comparable sales down 2.5% driven by a 3.9% in‑store decline and a 1.9% digital increase.
- Target guided to roughly 2% net sales growth in fiscal 2026 with adjusted EPS of $7.50 to $8.50, indicating a return to growth after multi‑year stagnation.
- Management reported a healthy, positive sales increase in February, citing it as an early milestone on the path back to growth.
- CEO Michael Fiddelke outlined a turnaround centered on stronger merchandising, upgraded store experience, technology investment, and team reinvestment, with capital spending planned at about $5 billion in 2026; non‑merchandise revenue lines grew, including membership more than doubling and same‑day delivery up over 30%.
- Shares jumped roughly 5% to 7% following the results and outlook, as investors assess execution risks and watch items like the Ulta Beauty partnership contract set to expire in August 2026.