The mass retailer’s performance in recent quarters pleased analysts. But can it deliver the gift of consistency and value to consumers in Q4?

Target is heading into the holiday season in a much more favorable position than last fiscal year.

In 2025, the mass retailer entered Q4 with a string of consecutive quarterly sales declines. In the third quarter that year, the company’s net sales dropped 1.5% year over year and comps decreased 2.7%.

The holiday period results weren’t much better, with Target’s Q4 net sales falling 1.5% and comps declining 3.9%.

“Last year, Target entered the holidays in a weak position,” GlobalData Managing Director Neil Saunders told Retail Dive via email. “It was struggling to keep its stores in order, it had challenges with adequate staffing, and it was on the back foot in terms of range development. The whole business lacked confidence and momentum.”

Target did try during the holiday season in 2025, Saunders flagged, noting that it had a solid gift assortment and showed some innovation in private label holiday food. However, those efforts were ultimately drops in the “otherwise quite insipid ocean,” he added.

There are early signs that this year could be different. Target in recent months has notched some wins as it once again approaches the ever-important festive season.

It’s been over a year since Target announced company veteran Michael Fiddelke would take on the CEO role from Brian Cornell, whose mostly successful reign concluded following several socio-political controversies that impacted Target’s reputation.

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