By Sarah Nassauer

Target's new chief executive, Michael Fiddelke, says he has a plan to pull the retailer out of its prolonged funk.

Target reported another sluggish quarter of sales Tuesday, its 13th consecutive quarter of weak or falling sales.

"Our team is firmly focused on writing Target's next chapter of growth," by improving merchandising, the shopping experience and technology, said Fiddelke in a statement Tuesday. For the current year, Target expects net sales to grow around 2% compared with last year. In February, the last month of the most recent quarter, sales rose, the company said.

Target had already announced plans to boost spending by $1 billion this year to turn the tide, investing in stores and technology. It has laid off corporate workers and some regional staff, in part to shift spending to improve staffing at stores.

On Tuesday, the company said its comparable sales, those from stores and digital channels operating at least a year, fell 2.5% in the quarter ended Jan. 31, and fell 2.6% for the full year.

The number of shoppers buying through Target fell in the quarter, and its profit contracted.

In the quarter, sales of food and beverage, beauty and toys grew, the company said.

Target's stock dropped 28% last year to $98, but has risen nearly 16% this year as some investors hope for a turnaround under Fiddelke's leadership. The company will host an investor day later Tuesday where executives are likely to share more details about their investments in the business.

In recent years, Target has struggled to boost sales as shoppers complained of messy stores, high prices and less exciting products. As inflation grew, many consumers also pulled back on buying discretionary items, the throw pillows, clothing and other splurges Target is known for. Target has also been embroiled in cultural issues that have caused some shoppers to pull back spending, such as controversy around its 2023 Pride month collection, an end to some of its diversity, equity and inclusion efforts and most recently, the presence of federal immigration officials in and around its stores.

As Target flounders, some competitors are growing fast. Amazon.com, Walmart and Costco have reported strong sales in recent months, attracting cash-strapped customers with low grocery prices or busy shoppers with speedy shipping. On Tuesday, Target said net sales in its most recent quarter fell 1.5% to $30.5 billion. Net profit fell 5.2% to $1.1 billion. For the current year, the company said it expects earnings per share to be flat to slightly up to $7.50 to $8.50, with stronger growth as the year progresses.

Write to Sarah Nassauer at Sarah.Nassauer@wsj.com

(END) Dow Jones Newswires

March 03, 2026 06:32 ET (11:32 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.