Target and Home Depot Show Divergent Q3 2025 Results

2025-11-19 companies

Minneapolis, Wednesday, 19 November 2025.
Target’s Q3 2025 earnings report shows a decline in sales and profits, contrasting with Home Depot’s growth in adjusted income, highlighting varied retail sector performance amid evolving consumer trends.

Target Corporation’s Earnings Decline

Target Corporation (NYSE: TGT) reported its third quarter 2025 financial results on November 18, 2025, showing a decline in both sales and earnings. The company’s net sales for the quarter totaled $25.3 billion, marking a 1.5% decrease from the same period in 2024. This decline was driven by a 2.7% decrease in comparable sales, with store sales falling by 3.8%, though digital sales saw a modest growth of 2.4% [1][2]. Target’s GAAP earnings per share (EPS) dropped to $1.51 from $1.85 the previous year, reflecting an 18.4% decrease -18.378. Adjusted EPS was $1.78, down approximately 4% from the prior year [1][3].

Home Depot’s Positive Performance

In contrast, Home Depot reported growth in its third quarter results, with sales reaching $41.4 billion, a 2.8% increase from the previous year. The company also saw an improvement in its adjusted operating income by $1.1 billion, reflecting a 2.8% rise from the same quarter in 2024 [4]. Despite challenges such as consumer uncertainty and housing market pressures, Home Depot managed a slight increase in comparable sales, both in the U.S. and internationally [5].

Retail Sector Challenges and Strategies

Both companies are navigating a challenging retail environment marked by shifting consumer behaviors and economic pressures. Target’s strategy includes expanding its market fulfillment to 35 additional markets and enhancing its same-day delivery services, which grew by over 35% during the quarter [1][6]. Meanwhile, Home Depot is adjusting its fiscal guidance for 2025, acknowledging ongoing pressures from a lack of storm activity and consumer uncertainty [4].

Future Outlook

Looking ahead, Target expects fourth-quarter sales to decline by a low-single-digit percentage and has adjusted its full-year profit guidance to reflect an EPS range of $7.00 to $8.00 [2][3]. Home Depot, on the other hand, projects total sales growth of approximately 3.0% for fiscal year 2025, with a slight positive outlook on comparable sales growth [4]. These forecasts underscore the divergent paths these retail giants are taking in response to current market dynamics.

Sources

earnings report retail sector