Target Shares Rise After Upbeat 2026 Profit Outlook

Core Viewpoint - Target's shares rose over 4% after the company provided stronger-than-expected profit guidance for the current year, forecasting net sales growth in every quarter of 2026 [1] Financial Projections - Full-year net sales are expected to grow by approximately 2% compared to 2025 levels, driven by a modest increase in comparable sales and contributions from new store openings and non-merchandise sales adding over one percentage point of growth [2] - Operating income margin is projected to expand by about 20 basis points from 2025's 4.6% [2] Sales Performance - CEO Michael Fiddelke noted a "healthy, positive sales increase" in February, marking an important milestone in the company's growth efforts for the year [3] - February performance and guidance helped mitigate weaker fourth-quarter comparable sales, which declined by 2.5%, slightly worse than Wall Street's expectations of a 2.47% drop [3] - Comparable digital sales increased by 1.9%, falling short of forecasts for 3.21% growth [3] Quarterly Results - Sales and traffic trends showed acceleration during the last two months of the quarter ending January 31, which included the holiday shopping season [4] - Quarterly operating income reached $1.38 billion, exceeding analyst projections of $1.35 billion [4] - Target has been implementing operational changes to attract cost-conscious shoppers amid ongoing cost-of-living pressures [4] - Despite a more than 6% decline in shares over the past year, the company has gained over 12% year-to-date [4]