Target outlines $5B 2026 CapEx plan as company accelerates store and technology investments

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• Target's business has not been performing up to its potential over the last few years

  80% confidence

• Q3 ending inventory was about 2% lower than a year ago

  80% confidence

• Target is committed to making the right investments to get outcomes in merchandising authority and elevating experience, and invests capital where strong returns are seen

  80% confidence

• Target continued to see a high degree of volatility in the business and is mindful of challenges facing consumers as exemplified by recent declines in consumer confidence

  80% confidence

• Target's new larger format stores are outpacing initial sales expectations and continue to be a strong source of growth

  80% confidence

• The headquarters restructuring that eliminated 1,800 roles was a difficult but necessary step forward

  80% confidence

• Q3 comp sales were down 2.7%, reflecting continued softness in discretionary categories like Home and Apparel, partially offset by growth in food and beverage and Fun 101

  80% confidence

• Third quarter net sales were 1.5% lower than a year ago, with comp sales in stores down about 4% and comparable digital sales growing 2.4% on top of nearly 11% a year ago

  80% confidence

• Target is not satisfied with top line performance and is doing the work with urgency

  80% confidence

• Target expects low single-digit decline in Q4 comparable sales and updated full-year adjusted EPS range to $7-$8

  80% confidence

• Q3 gross margin rate was 28.2%, about 10 basis points lower than last year

  80% confidence

• Target's three key priorities are to solidify design-led merchandising authority, offer consistently elevated experience across stores and digital platforms, and more fully use technology to improve speed, guest experience and efficiency

  80% confidence

• Target has built a solid foundation of operating capabilities, including one of the nation's largest loyalty programs in Target Circle and a rapidly growing retail media business in Roundel

  80% confidence

• Seasonal strength included nearly 10% comp in toys and double-digit growth in music, video games and expanded selection of sporting equipment

  80% confidence

• Target plans approximately $180 million of expected annualized savings from recent business transformation efforts

  80% confidence