Target Corp. posted its largest comparable-sales increase in four years for the first quarter, with net sales rising 6.7% to $25.4 billion and comparable sales up 5.6.

The company has faced past criticisms over strategic missteps, including reducing Pride displays and scaling back DEI programs, contrasted with now emphasizing a fun, treasure-hunt in-store experience.

Strategic focus now includes expanding merchandising with broader price options in wellness and toys, and in-store experiences like Hot Wheels collaborations for kids’ bedding and decor.

Improvement follows earlier supply-chain and store-presentation challenges, with leadership reshuffles and a fresh head of supply chain aiming to fix inventory and on-shelf availability.

CEO Michael Fiddelke, who took over in February, credited the improvement to an ongoing operational overhaul, cautious optimism, and stronger guest response despite macro uncertainty.

Operational changes feature leadership reshuffles, higher store staffing, streamlined distribution and regional-office cuts, and appointing a former Walmart executive as head of supply chain to tackle stock issues.

Adjusted earnings per share came in at $1.71, topping analyst expectations and supporting a brighter near-term outlook.

Target benefited from about 3,000 lower-priced items in March to offset inflation and attract price-conscious shoppers amid competition from Walmart, Amazon, and off-price retailers.

Earlier struggles included competition from Walmart, store-condition concerns, and DEI controversies that affected brand perception and sales during the turnaround.

Profitability and reputation issues from prior store conditions and DEI decisions are being addressed as Target aims to reclaim market share from rivals like Walmart.

Past challenges also encompassed store presentation and DEI-related policy decisions that impacted public perception as Target works to regain its stylish-but-affordable niche.

Company emphasizes fixing supply-chain issues and improving inventory to reduce stockouts.