Goal Corp. on Aug. 20 named Chief Working Officer Michael Fiddelke as its subsequent chief government officer, succeeding longtime CEO Brian Cornell, because the retailer reported quarterly earnings that topped Wall Road 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 a 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 position of government 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 unbiased director of the board, stated in a press release.
The succession marks the tip of an period for Cornell, who’s broadly credited with steering Goal by a significant transformation. Below his management, the retailer leaned into its “stores as hubs” mannequin, expanded same-day companies 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 steer 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 section. Fiddelke, who has held management roles throughout merchandising, finance, operations, and human sources, stated he was moving into the position with “an urgent commitment to drive growth and deliver better results.”
The management announcement coincided with the launch of second-quarter monetary outcomes. Internet 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 companies.
Profitability fell extra sharply. Internet revenue 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 revenue declined practically 20 p.c to $1.3 billion as larger markdowns, cancellation prices, and class combine weighed on margins.
Nonetheless, Goal’s income outcomes surpassed Wall Road expectations, providing a measure of resilience within the face of challenges. Analysts had forecast quarterly gross sales of $24.93 billion, in keeping with information 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 important social and political headwinds. The corporate got here beneath hearth in 2023 for promoting LGBT-themed attire and books for kids as a part of its annual Pleasure Month assortment. Conservative commentators urged boycotts, evaluating the backlash to the controversy that engulfed Bud Gentle 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 few of the extra controversial gadgets, citing worker security and threats in shops.
Cornell defended Goal’s range, 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 clients and staff. However because the political and social temper shifted, Goal in early 2025 introduced it will 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 count on GAAP earnings of $8 to $10 per share, or $7 to $9 per share on an adjusted foundation, and forecasts a low-single-digit proportion decline in general gross sales for fiscal 2025.
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