“On the operating income line, we're planning for a 2026 rate that's approximately 20 basis points higher than the 4.6% adjusted rate we earned in 2025 as the savings opportunities I outlined earlier are expected to fully fund our P&L investments.”

In context

“the field team changes we announced in February. Beyond those discrete savings, our team has adopted a continuous productivity mindset and identified a host of productivity opportunities that will deliver additional savings to the P&L. So with that context, I want to turn to our guidance for the year, starting with the top line. For the full year, we're planning to grow net sales in a range around 2% versus last year, including a small increase in our comparable sales. On top of comp sales, we'll benefit from the opening of new stores, robust growth and revenue from Roundel and from third-party sellers on Target Plus. In total, those sources are expected to add more than 1 percentage point of growth this year. I'll add that we're planning for top line growth in every quarter of the year. On the operating income line, we're planning for a 2026 rate that's approximately 20 basis points higher than the 4.6% adjusted rate we earned in 2025 as the savings opportunities I outlined earlier are expected to fully fund our P&L investments. Altogether, based on our expectations for the top line and operating margin, we're expecting to generate GAAP and adjusted EPS in a range from $7.50 to $8.50 in 2026. The center of this range represents healthy growth of 5% to 6% when compared with last year's adjusted EPS. I want to pause and take note of the significant effort of the team, which has allowed us to enter this year laser-focused on delivering on our strategy and fully funding our growth-driving initiatives while also delivering modest margin expansion for the year. One other note, while we're not planning to provide ongoing quarterly guidance, I want to share some color on expected timing throughout the year as we're planning for stronger profit growth in the back half of the year based on 3 primary timing considerations.”