Shares of big-box retailer Target (NYSE: TGT) slid about 4% after the company reported its fiscal first quarter of 2026 (the period ended May 2, 2026) earlier this week.
At first glance, this reaction may be surprising
After all, the quarter offered the clearest evidence yet that Target’s long-awaited turnaround is taking hold. And management was confident enough to raise its full-year sales forecast. Target said its comparable sales — a measure of sales trends at stores and digital channels open for at least 13 months — rose 5.6%, the company’s first positive reading in five quarters.
So why did the stock fall anyway? The turnaround is showing up To appreciate how notable a 5.6% comparable-sales increase is for Target, it helps to remember where the retailer has been. Its comparable sales fell in each of the prior four quarters — down 3.8%, then 1.9%, then 2.7%, then 2.5%, even as bigger rival Walmart kept growing.