Purpose (TGT) Q2 2025 Profit

Target On Wednesday, he defeated the profit and expectations of sales in Wall -Rate and once again confirmed his forecast, even when the sales and traffic of the discounting in the stores and the web -si decreased.

However, a retailer based in Minneapolis Calling the following CEO. Chief Operational Director Michael Fiddelke, who also held the post of Target Financial Director, will take the role of February 1. He will postpone the success of CEO Brian Cornela, who will become the executive chairman of the Target Board. Fiddelke-20-year-old target veteran.

The stock of approximately 8% in Premarket’s auction after the results and announcement of the CEO.

At the call with journalists, the 49 -year -old Fiddelke called his two decades in the company as an “asset”. He said he knew what could be the retail trade of the big box-and that he should return-and did not wait until February to make changes.

He posted three priorities: to resume Target’s reputation as a retailer with stylish and unique subjects, providing more consistent customer experience and more effectively using technology to manage an effective business.

In addition to announcement of the CEO, the discount based in Minneapolis headed Wall Street’s expectations for sale and profit in the second financial quarter. He repeated his forecast for the full year, which he reduced in May. The goal stated that it expects a low unambiguous percentage reduction in sales and adjusted income, except for income from court calculations, will be about $ 7 to $ 9.

Here’s the fact that Target reported over the three-month period, which ended on August 2 compared to Wall Street’s expectations, LSEG analysts said:

• Profit per share: $ 2.05 Vs. Is expected by 2.03 dollars
• Income: $ 25.21 billion against $ 24.93 billion expected

Target’s annual sales have been approximately stagnant over the last four years, and its contradictory results checked the loyalty of buyers and shaken the confidence in Wall Rate. According to Placer.ai, an analytical firm that uses anonymous data from mobile devices, retains traffic to Big Box, which uses anonymous data from mobile devices. And at the end of 2021, the company’s shares collapsed about 60% of the maximum over the whole time.

Customers and former employees said CNBC Target lost some unique features This distinguished it from competitors such as its attractive goods, well -groomed stores and careful customer service. Higher tariffs make up the target because it imports about half of what is sold.

And last week Ulta Beauty and Target announced that there is Ending the transaction that opened a mini -shop of beauty In almost a third of Target stores. A partnership, which also added Ulta beauty brands to Target, will end in August 2026. Target spoke about adding Ulta stores as a traffic driver and enhancing its beauty category.

Fiddelke told reporters that the company “always evaluates our partnerships”. He said Target has placed an annual sales growth in its beauty category, except for Ulta’s beauty, every year since 2010, and confidently that it may continue.

Target’s last quarter reflected her current struggle. Its net income declined to $ 935 million, or $ 2.05 per share, with $ 1.19 billion, or $ 2.57 per share, in Quarter of the year. The revenue decreased from $ 25.45 billion for the previous year.

Comparative sales decreased by 1.9% a year. This metric, also known as sales in one store, includes sales on its site and open stores at least 13 months.

Customer deals decreased by 1.3%, and the average amount made during these transactions decreased by 0.6% from the quarter of the year.

Its profits put pressure on the increase in the marking level, the cost of canceling the purchase and customers who buy more goods in low income categories, such as Hardlines. Hardlines, a category that includes electronics and toys has smaller stocks than other stores such as clothing.

Digital sales were a bright place, increasing by 4.3% a year.

Target also posted profits in some parts of their businesses that are located in retail. Its non-dimensional sales increased by 14.2% compared to the period of the year, as they brought more profit from advertising business circles, membership programs and the third market.

Target Retail trends have improved from the first quarter to the second quarter – although they were negative, Fiddelke told reporters. He said the sales trends in all six key categories of Target goods improved compared to the previous quarter.

As a leader of the enterprise acceleration office, a single goal created in May to head his turn, Fiddelke said he was able to look more closely at the business and where it is insufficient. For example, he said, retailer lost land with household goods, the category she was known, and the one that exploded during the Covid pandemic. He said Target focused too much on “major” subjects and “lost some of our fashionable and design guidance, which is so important in this category.”

But, he said, this has made a certain progress, for example, adding Disney and Marvel bedding, in Pillowfort, a Target brand for baby home goods.

“Now we need more of these examples throughout the category, but they give me a ton of confidence that we are on the right path,” he said.