Target Stock Sinks as Retailer Replaces CEO With Company Veteran

Target (TGT) shares sank 11% in premarket trading Wednesday as the struggling retailer replaced its CEO with a company veteran even as its business showed signs of improvement in the second quarter.

Target announced that long-time employee Michael Fiddelke would be taking over for Brian Cornell on Feb. 1, 2026. Cornell, who has held the post for 11 years, will become executive chair of the board.

Fiddelke has been with the company for 20 years, and recently launched and began leading the Enterprise Acceleration Office, which Target explained was aimed at reshaping how the firm operates, “removing complexity, expanding technology and enabling more flexibility so the team can move faster to improve performance and drive long-term growth.”

Independent board member Christine Leahy said the board has been considering a succession plan for several years, and that it was clear “Michael is the right leader to return Target to growth, refocus and accelerate the company’s strategy, and reestablish Target’s position as a leader in the highly dynamic and fast-moving retail environment.”

Q2 Sales Top Estimates

Along with the CEO change, Target announced solid financial results. Sales were down 0.9% year-over-year to $25.21 billion, but that was above the estimate of analysts surveyed by Visible Alpha. Comparable store sales declined 1.9%, while the Visible Alpha forecast was for a drop of 3.06%. Adjusted earnings per share (EPS) of $2.05 was in line with expectations.

Cornell said the performance “showed encouraging signs of recovery, including improved traffic and sales trends—particularly in our stores—and disciplined cost management in a challenging retail environment.”

Target reiterated its full-year guidance of adjusted EPS of $7.00 to $9.00, and sales falling by a low-single-digit percentage. 

At the close of trading yesterday, shares of Target were 22% lower year-to-date.