Sales slip at Target as US shoppers curtail spending

19th Nov 2025 13:34

(Sharecast News) - Target Corporation posted a bigger-than-expected fall in quarterly sales on Wednesday, as US shoppers pulled back on discretionary spending.

The big box chain saw net sales slip 1.5% in the three months to 1 November, to $25.3bn, while total comparable sales were 2.7% softer. Wall Street had been expecting a less steep decline in comparable sales, of 2.1%.

Digital sales rose 2.4% on a comparable basis. However, that was also below expectations, for a rise of 3.2%.

The US retail sector is facing a number of headwinds. As well as ongoing economic uncertainty caused by Donald Trump's swingeing tariff regime, more recently the prolonged US government shutdown - the longest in the country's history - delayed federal pay and benefits, leaving many Americans out of pocket.

Target flagged "continued softness across the broader discretionary portfolio" during the third quarter.

However, looking to the critical holiday season, the chain reiterated guidance for a low-single digit decline in sales in the fourth quarter.

Target said it had introduced 20,000 new items, twice as many as last year, alongside bargain Thanksgiving meals and gifts. It has also cut prices across food and drink.

Michael Fiddelke, incoming chief executive, said: "Our third quarter performance was in line with our expectations, despite multiple challenges continuing to face our business.

"As we head into the all-important holiday season, our team is well prepared."

Target posted earnings per share of $1.51 in the quarter, or $1.78 once non-recurring severance and asset related charges were stripped out.

It is forecasting full-year EPS of between $7.70 and $8.70.

Current chief operating officer Fiddelke will take over as chief executive in February 2026.

He is replacing long-serving incumbent Brian Cornell, who is due to retire after nearly 12 years in the role.