Target shares dropped 10 percent in premarket trading after the company announced a leadership transition and reported weaker sales. Although earnings and revenue exceeded Wall Street expectations, investors reacted strongly to the leadership shift and ongoing pressure on store traffic.
The company confirmed a major Target CEO change, naming Chief Operating Officer Michael Fiddelke as its next chief executive. He will take over on February 1, while current CEO Brian Cornell will transition to executive chair of the board. Fiddelke, who has served as both CFO and COO, brings 20 years of experience at the retailer.
Fiddelke said his long tenure gave him an advantage in understanding Target’s culture and strengths. He also promised to act quickly rather than wait for his official start date. His three immediate priorities include restoring Target’s reputation for stylish products, improving consistency across stores and digital platforms, and using technology to boost efficiency.
Beyond the leadership announcement, Target posted second-quarter results that topped analyst estimates. Earnings per share reached $2.05, compared with expectations of $2.03. Revenue came in at $25.21 billion, surpassing forecasts of $24.93 billion. The company reaffirmed its full-year outlook but still projected a low single-digit sales decline.
Despite these positive results, concerns about long-term growth remain. Target’s annual sales have stayed largely flat for four years. Store traffic has fallen almost every week since January, based on retail analytics data. Shares have dropped about 60 percent from their record high in 2021, highlighting the challenges facing management.
Market analysts said the Target CEO change could mark a turning point. With new leadership and clear priorities, the company hopes to rebuild shopper loyalty and strengthen financial performance. However, experts warned that execution will be critical, especially in a highly competitive retail market.
The sharp reaction in Target’s stock shows that investors want more than an earnings beat. They want assurance that management can deliver consistent growth and adapt to evolving consumer demands. Therefore, the Target CEO change is seen as both a risk and an opportunity for the company’s future.
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