CEO Fiddelke's $5-6B turnaround & FY26 reinvestment (AI/stores/baby/OpenAI/grocery)
Key Questions
What is Target's FY26 capex plan under CEO Fiddelke?
CEO Fiddelke outlined $5-6B FY26 capex, including $1B for stores with 130 remodels and 30+ new locations. Focus areas include AI (Trend Brain), next-day delivery, baby boutiques, and grocery specialties.
What are Target's sales and EPS guidance for FY25 and FY26?
FY25 expects -1.7% sales decline and lower EPS. FY26 projects 2% revenue growth and EPS of $7.5-8.5.
What new store openings is Target planning?
Target is opening new stores including West Orange NJ (280 jobs), Wilmington, Terre Haute (Fuquay NC mentioned in summary), and others as part of 30+ new stores initiative.
How is Target investing in AI and digital improvements?
Investments include AI via Trend Brain for next-day delivery and digital gains aligning with turnaround plan. This supports grocery specialty and TJ emulation strategies.
What should investors track for Target's turnaround?
Key metrics to track include Q1/May comps, FCF, store performance, AI rollout, and regional traffic.
Fiddelke $5-6B FY26 capex ($1B stores/130 remodels/30+new/West Orange NJ etc.)/AI Trend Brain/next-day/baby boutiques; FY25 sales -1.7%/EPS down/FY26 2% rev/$7.5-8.5; grocery specialty/TJ emulation/digital gains align plan; track Q1/May comps/FCF/stores/AI/Fuquay NC.