Story perspectives

Target Sales Jump 5.6%, Hires Former Walmart Exec

5/20/2026

Summary

Target Lifts Outlook

Target Corp. reported comparable sales rose 5.6% in the quarter ending May 2, 2026, and lifted the 2026 net-sales outlook to 4%, projecting $108.97 billion.
Quarter earnings of $781 million ($1.71 per share) accompanied net sales that rose 6.7% to $25.44 billion, beating the $24.7 billion forecast.
On May 19, Target hired a former Walmart executive as head of supply chain as part of its $6 billion turnaround plan, which adds store remodels and new home accessories.

Summary

Target CEO Urges

Target CEO Michael Fiddelke signed an open letter with 59 Minnesota CEOs urging de-escalation after a protester’s death.
Local activists urged Target to condemn U.S. President Donald Trump’s deployment of federal agents to Minneapolis after two protest-related killings.
Target’s two-year DEI rollback sparked protests, boycotts and a sales dip, though first-quarter traffic rose.
Target will expand beauty studios to over 600 stores in the fall, growing its experiential retail footprint.

Summary

Target Drives Growth

Target's digital sales rose 8.9% in the quarter, outpacing the 1.9% growth in the prior three months.
Same-day deliveries via Circle 360 surged 27%, boosting convenience-driven purchases.
Toy sales grew double-digit as more than 3,000 items were priced under US$10.
First-quarter gross margin rose to 29% on supply-chain savings, Roundel ad revenue and lower markdowns.

Summary

Target Sales Surge

Target's comparable sales rose 5.6% despite higher gas prices, showing consumer resilience.
Collaborations with Pokémon and influencer-favored brand Parke boosted foot traffic in Target stores during the quarter.
Retail analyst Joe Feldman of Telsey Advisory Group said Target should regain market share as it progresses.
Competition from Walmart and Amazon has intensified, prompting scrutiny of recent strategy missteps such as scaling back Pride displays.

History

Historical Context

In 2013 Target launched 133 Canadian stores after buying Zellers leases, aiming to capture cross-border shoppers. Supply-chain glitches, higher prices and fierce competition from Walmart Canada and Loblaws led to empty shelves and a $2.1 billion loss, prompting CEO Brian Cornell to shut the chain in January 2015. The 2026 $6 billion turnaround under CEO Michael Fiddelke draws on those lessons to regain market share.

1 of 5

Target Lifts Outlook

Target Corp. reported comparable sales rose 5.6% in the quarter ending May 2, 2026, and lifted the 2026 net-sales outlook to 4%, projecting $108.97 billion.
Quarter earnings of $781 million ($1.71 per share) accompanied net sales that rose 6.7% to $25.44 billion, beating the $24.7 billion forecast.
On May 19, Target hired a former Walmart executive as head of supply chain as part of its $6 billion turnaround plan, which adds store remodels and new home accessories.

1 / 5