The numbers
13: Consecutive quarters in which Target has reported flat or declining sales. New CEO Michael Fiddelke promised a return to growth in every quarter of 2026.
$30.5 billion: Net sales in the fourth quarter of 2025. That’s a 1.5% drop year over year, and a 2.5% drop when adjusted for inflation.
3.9%: The year-over-year drop in fourth-quarter comparable sales.
$915 million: Target’s advertising revenue in 2025, primarily from ad arm Roundel. During the fourth quarter, Target reported $295 million in ad revenue, up 55.3% from $190 million in the year prior.
The watercooler talk
At a financial community meeting in Minneapolis, Target executives reported full-year and fourth-quarter 2025 earnings while promising big changes in response to a slew of challenges the retailer has faced over the last few years, including more than three years of flat or falling sales.
Stock prices rose immediately following the financial release. The retailer narrowly beat analyst expectations, and investors seemed encouraged by the promise of a return to growth.
While Target has yet to name a new CMO following Lisa Roath’s move to chief operating officer in 2024, Michelle Mesenburg was recently named senior vice president and chief brand officer. Mesenburg will oversee brand strategy as it relates to customer experience, a Target spokesperson said in an email.
On Feb. 10, Target announced two other leadership changes, effective Feb. 15. First, former chief guest experience officer Cara Sylvester moved into a new role as chief merchandising officer. Christina Hennington’s role also expanded from chief growth officer to chief strategy and growth officer.
The retailer is conducting an external search for a chief guest experience and marketing officer, a spokesperson said.
The key quote
Sylvester addressed investors directly during the call to outline myriad changes that the retailer is making to its merchandising assortment. Target is improving the production speed of its fashion lines to capitalize on trends, revamping its home section, and launching Target Beauty Studio later this year, she said. Target’s in-store partnership with Ulta expires in August.
