Target shares are gaining roughly 3% in early trading on Friday after the Financial Times reported that activist investor Toms Capital Investment Management has acquired a significant stake in the retail chain.

The investment comes as Target faces challenges following a prolonged sales slump that has erased nearly a third of its share value this year, the report added.

The retailer has struggled with 12 consecutive quarters of negative or negligible sales growth. Target’s stock has declined 64% from its pandemic-era peak, when consumers turned to the company as a one-stop destination for essentials, clothing, and home goods. The company has also underperformed compared to the broader retail sector.

Toms Capital, founded in 2017 by former GLG Partners executives, has recently taken positions in several major companies including Pringles manufacturer Kellanova, U.S. Steel, and Kenvue, where it has advocated for strategic changes.

The exact size of Toms Capital’s investment in Target remains undisclosed. Target had a market capitalization of about $43.7 billion as of Wednesday’s close.