Goal Corp. on Aug. 20 named Chief Working Officer Michael Fiddelke as its subsequent chief govt officer, succeeding longtime CEO Brian Cornell, because the retailer reported quarterly earnings that topped Wall Avenue estimates regardless of a gross sales decline.
Fiddelke, a 20-year firm veteran who beforehand served as Goal’s chief monetary officer, will take over as CEO and be part of the board on Feb. 1, 2026, the corporate stated in an Aug. 20 launch. Cornell, who has led the Minneapolis-based retailer since 2014, will transfer into the function of govt chair.
“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,” Christine Leahy, lead impartial director of the board, stated in an announcement.
The succession marks the tip of an period for Cornell, who’s broadly credited with steering Goal by means of a serious transformation. Beneath his management, the retailer leaned into its “stores as hubs” mannequin, expanded same-day providers corresponding to Drive Up, and constructed up a $30 billion portfolio of owned manufacturers. The board famous that in Cornell’s 11 years on the helm, Goal’s revenues grew by $34 billion, turning it right into a $100 billion-plus firm.
Cornell known as it a “privilege” to guide Goal and stated Fiddelke’s “remarkable level of resolve in the face of complex challenges” and fervour for development could be important in shaping the corporate’s subsequent part. Fiddelke, who has held management roles throughout merchandising, finance, operations, and human sources, stated he was moving into the function with “an urgent commitment to drive growth and deliver better results.”
The management announcement coincided with the launch of second-quarter monetary outcomes. Web gross sales edged down 0.9 p.c to $25.2 billion, whereas comparable gross sales declined 1.9 p.c. Retailer gross sales dropped 3.2 p.c, though that was partly offset by 4.3 p.c development in digital channels, fueled by demand for same-day providers.
Profitability fell extra sharply. Web earnings dropped to $935 million, or $2.05 per share, from $1.19 billion, or $2.57 per share, in the identical quarter a 12 months earlier. Working earnings declined practically 20 p.c to $1.3 billion as greater markdowns, cancellation prices, and class combine weighed on margins.
Nonetheless, Goal’s income outcomes surpassed Wall Avenue expectations, providing a measure of resilience within the face of challenges. Analysts had forecast quarterly gross sales of $24.93 billion, in response to knowledge compiled by LSEG. The higher-than-expected top-line efficiency mirrored improved retailer site visitors in contrast with the primary quarter and broad-based enhancements throughout Goal’s six core merchandising classes. Cornell stated the numbers confirmed “encouraging signs of recovery,” pointing to stronger gross sales momentum in shops and disciplined value administration.
Throughout Cornell’s tenure, Goal additionally navigated vital social and political headwinds. The corporate got here below fireplace in 2023 for promoting LGBT-themed attire and books for youngsters as a part of its annual Satisfaction Month assortment. Conservative commentators urged boycotts, evaluating the backlash to the controversy that engulfed Bud Mild after it partnered with an influencer who recognized as transgender. At one level, Goal misplaced greater than $10 billion in market worth because the boycott gained traction. The corporate later eliminated a number of the extra controversial objects, citing worker security and threats in shops.
Cornell defended Goal’s variety, fairness, and inclusion (DEI) efforts, telling Fortune’s “Leadership Next” podcast in 2023 that DEI insurance policies have been “good business decisions” that constructed engagement with prospects and workers. However because the political and social temper shifted, Goal in early 2025 introduced it might wind down a number of high-profile DEI initiatives, together with its racial fairness motion and alter (REACH) program and exterior participation within the Human Rights Marketing campaign’s company equality index. Executives stated the choice mirrored a have to “stay in step with the evolving external landscape.”
In its second-quarter earnings report, Goal additionally reaffirmed its full-year monetary outlook. The corporate continues to anticipate GAAP earnings of $8 to $10 per share, or $7 to $9 per share on an adjusted foundation, and forecasts a low-single-digit share decline in general gross sales for fiscal 2025.
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