Target’s bad year continues: Sales decline and stock slips as high-stakes holiday shopping season arrives

Core Insights - Target Corporation reported its third-quarter fiscal 2025 earnings, continuing a trend of declining sales that has persisted for years [1] - The company's net sales fell short of analyst expectations, while adjusted earnings per share slightly exceeded forecasts [2] Financial Performance - Net sales for Q3 2025 were $25.3 billion, a decrease of 1.4% from the same period in 2024 [6] - Adjusted earnings per share (EPS) were $1.78, down from $1.85 in the same period in 2024 [6] - Operating income was reported at $948 million, reflecting an 18.9% decline [6] - Net earnings amounted to $689 million, a decrease of 19.3% [6] Market Challenges - Target faces multiple challenges, including stagnant or declining sales driven by broader economic factors such as inflation and rising cost-of-living expenses [3][4] - Increased competition from other big-box retailers like Walmart and online platforms such as Amazon, Temu, and Shein has intensified the pressure on Target [4] Customer Experience Issues - Unique challenges for Target include customer complaints regarding store layouts, long lines, and understaffing, which have negatively impacted customer service perceptions [5]