An aerial view of a Target store captured on August 11, 2025, in Austin, Texas, sets the stage for the critical fiscal second-quarter earnings report the retailer is set to unveil before the market opens on Wednesday. Investors are keenly awaiting insights into whether the struggling discount chain is beginning to recover.
According to a survey of analysts conducted by LSEG, Wall Street’s expectations for the retailer’s most recent quarter include earnings per share of $2.03 and anticipated revenue of approximately $24.93 billion.
For nearly four years, sales at the Minneapolis-based retailer have shown little growth. Since peaking in late 2021, Target’s stock has plummeted by about 60%.
The challenges facing the big-box retailer have intensified this year, with data from analytics firm Placer.ai indicating a decline in store traffic nearly every week since late January. Consequently, Target’s stock has experienced a 22% decline thus far in 2025.
In conversations with CNBC, various customers and former employees expressed concerns that Target has lost some of its distinctive qualities that once set it apart from competitors, including its attractive merchandise, clean stores, and attentive service.
Moreover, increased tariffs have contributed to Target’s difficulties, as roughly half of its merchandise is imported, according to the company.
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Additionally, Target and Ulta Beauty announced last week that they will terminate their partnership, which had introduced mini beauty shops in nearly one-third of Target locations. This deal also included the availability of Ulta’s beauty brands on Target’s website and is scheduled to conclude in August 2026. Target had highlighted the introduction of these Ulta shops as a potential driver of customer traffic and an enhancement to its beauty product offerings.
