LONDON (ShareCast) - (Sharecast News) - Shares in retail giant Target slumped early on Wednesday despite posting a modest beat in its second-quarter results, as disciplined cost control and digital growth helped offset continued softness in store traffic and merchandise margins.
Target said adjusted earnings per share came in at $2.05, ahead of the $2.03 expected by analysts, while revenues dipped 0.9% year-on-year to $25.2bn as overall sales remained under pressure amid cautious consumer spending.

Same-store sales declined 2.3%, a narrower drop than expected, while digital comparable sales rose 4.3%, driven by over 25% growth in same-day delivery. Non-merchandise revenues jumped 14.2% but operating income fell 17.4% to $934m.

Operating margins slipped to 3.76% and gross margins contracted by 140 basis points to 21.5%, reflecting higher markdowns and elevated supply chain costs

Looking ahead, Target reaffirmed its full-year guidance, forecasting a low-single-digit decline in sales and adjusted earnings per share of $7.50 to $8.00.

The Minneapolis-based retailer also named chief operating officer Michael Fiddelke as its next chief executive, succeeding current CEO Brian Cornell on 1 February 2026. Cornell will then transition into an executive chair role.

As of 1355 BST, Target shares were down 9.82% in pre-market action at $95.01 each.



Reporting by Iain Gilbert at Sharecast.com

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