Target's Q1 2026 comp sales jumped 5.6% as new CEO Fiddelke's turnaround took shape

Target entered 2026 with three straight years of sales declines and three consecutive quarters of negative comparable sales. It was losing ground to Walmart, customers complained of disheveled stores that had lost the stylish-but-affordable niche behind its 'Tarzhay' nickname, and its rollback of diversity, equity and inclusion initiatives had triggered protests and boycotts that dented sales.

Fiddelke, a 20-year company veteran who became CEO in February 2026, unveiled a $6 billion plan in early March: remodel stores, reclaim the chain's stylish-clothing reputation, and improve store staffing and worker training. He reshuffled leadership, raised store-staffing spend, cut at distribution facilities and regional offices, and named a former Walmart executive head of supply chain to fix unreliably stocked shelves. Where share had slipped, 75% of decorative home accessories would be new, plus collaborations like Roller Rabbit and expanded sub-$10 toys.

The first read came with Q1 results for the quarter ended May 2, 2026: comparable sales rose 5.6%, the biggest gain since early 2022 and the first positive read after three negative quarters, on broad-based traffic across regions and customer types. Net sales rose 6.7% to $25.44 billion and adjusted EPS of $1.71 beat the $1.47 analysts expected, though net income of $781 million was still below the year-ago $1.04 billion. Target raised its full-year net sales growth outlook from 2% to 4%.

Comparable sales +5.6% in the quarter ended May 2, 2026 — biggest jump since early 2022; net sales +6.7% to $25.44B; full-year sales outlook raised from +2% to +4%.

The decline was operational, not cyclical: customers complained of disheveled stores that had lost the 'Tarzhay' stylish-budget niche.

The $6B plan put spend where shoppers notice: remodels, staffing, training — plus a Walmart veteran to fix chronically unreliable shelves.

Fiddelke rebuilt the merchandising engine where share had slipped, refreshing 75% of home decor and adding sub-$10 toys and new label collaborations.

Boycott damage from the DEI rollback made broad-based traffic growth the clearest signal the brand was winning customers back.

Turnarounds read fastest when the money lands where customers notice — staffed, stocked stores and product worth wanting — rather than only in cost lines.

Target raised its full-year net sales growth outlook to 4% (about $108.97 billion) and steered EPS toward the high end of $7.50-$8.50. Fiddelke stayed guarded — 'cautious outlook given the work we know we have in front of us' — with quarterly net income still down year over year. The plan's remaining tests are sustaining the traffic through the remodels, staffing investment and shelf-availability fixes across the rest of 2026.