Target has introduced a new policy intended to improve customer satisfaction. Associates are now encouraged to smile and interact with customers. If incoming CEO Michael Fiddelke considers this to be the solution to declining sales and traffic, Target will continue to languish in financial performance. At my local Target Superstore in Durham, NC. where this commentator occasionally shops, smiles from associates would be welcomed if there were in fact associates. Rows of unmanned checkout stations result in congestion at the few that operate.
According to the November 19th release of Q3 2025 financials, the company earned $689 million on revenue of $23,270 million with a diluted EPS of $1.51 million. This compares with Q3 2024 net earnings of $854 million on revenue of $25,668 million with a diluted EPS of $1.85.
Gross margin was 28.2 percent compared to 28.3 percent in the corresponding third quarter of 2024. Operating margin declined from 4.4 percent to 3.8 percent. Comparable same store sales were 3.8 percent lower consistent with a 1.5 percent decline in total sales.
In commenting on the quarter, incoming Fiddelke noted, “We continue to focus on the important work to deliver on our three key priorities: solidifying our 
merchandizing authority, elevating the shopping experience and further harnessing the power of technology to move at greater pace and consistency.”
Target guidance included a low-single digit decline in sales and full year EPS of $7.70 to $8.70 on a GAAP basis. Litigation, severance settlements and asset charges will reduce diluted EPS to a range of $7.00 to $8.00.