New appointment announced for CEO position amid retailer's struggle to boost sales figures

In a significant move, Target has announced that Michael Fiddelke will become its next CEO, effective from February 1. The current CEO, Brian Cornell, will step down after more than a decade at the helm.

Fiddelke, who has been with Target for over 20 years, has held leadership roles across merchandising, finance, operations, and human resources. In his current position as Chief Operating Officer, he has overseen efforts that enabled exponential growth across the business and spearheaded enterprise efforts to deliver more than $2 billion in efficiencies.

Christine Leahy, the lead independent director of Target's board, stated that Fiddelke is the right leader to return Target to growth. Leahy also noted that what sets Fiddelke apart is his ability to challenge the status quo and evolve how the business operates, differentiates, and delivers long-term value. She highlighted his unmatched enterprise insight and a foundation of strong team trust.

Target reported $25.2 billion in sales for its latest fiscal quarter, a 1% decrease from the previous year. Sales at stores open at least a year fell nearly 2%, with in-store sales dropping more than 3%. However, online sales grew a little over 4%. The company's profit for the quarter was $1.3 billion, down about 19% from last year.

Target blamed the sales dip on shoppers pulling back on merchandise, though stronger non-merchandise sales partially balanced this out. The company had previously warned of year-over-year profit pressure in the first quarter due to tariff uncertainty.

In response to the challenges, Target announced a new multi-year growth initiative called the Enterprise Acceleration Office. This initiative aims to help the company operate more nimbly.

Target expects adjusted earnings per share to be approximately $7 to $9 for fiscal 2025, down from its prior expectation of $8.80 to $9.80. The company is maintaining its expectation of a low-single digit decline in sales for fiscal 2025, down from its previous forecast of net sales growth of about 1%.

Target's stock (TGT) experienced a 7.61% decrease, with the last price at $97.36. Despite the current challenges, the company remains optimistic about its future under Fiddelke's leadership.

New appointment announced for CEO position amid retailer's struggle to boost sales figures