Target appoints Michael Fiddelke as CEO

Target announces a new chief executive as it reports a mixed second quarter and sets a cautious path for 2025.

Target Names Michael Fiddelke as CEO

Target's board has named Michael Fiddelke the next chief executive officer, signaling a governance shift as the retailer navigates a challenging retail environment. In the second quarter, Target posted net sales of $25.2 billion, a 0.9 percent decline from the year before, while GAAP and Adjusted earnings per share stood at $2.05, down from $2.57 in 2024. Digital growth of 4.3 percent helped offset a portion of store sales declines, and non merchandise revenues rose 14.2 percent driven by Roundel, membership, and marketplace activities. In-store traffic and category performance improved versus the first quarter, providing a glimmer of momentum as Target braces for the back to school and holiday seasons.

Guidance for fiscal 2025 remains a low single digit decline in sales, with GAAP EPS expected in the range of $8.00 to $10.00 and Adjusted EPS around $7.00 to $9.00. The company points to disciplined cost management and ongoing investments in store remodels, advertising, and digital capabilities as key levers. The leadership change will be tested by execution across channels, especially as inflation, tariffs, and shifting consumer preferences press on margins and promotional activity.

Leadership changes often accompany tougher quarters, but the real test lies in how the strategy translates into results. Fiddelke arrives with a strong financial background and experience in scaling corporate operations, which could sharpen Target’s cost discipline and digital integration. He inherits a plan that already balances in store improvements with growth in non merchandise revenue, yet margins remain under pressure from markdowns and category mix. The focus on Roundel and digital fulfillment shows ambition to diversify revenue and cushion brick and mortar volatility, but execution will determine whether these moves offset slower top line growth.

The quarter underscores a broader industry challenge: digital growth helps, but it does not erase the need for price discipline and efficient capital allocation. As Target leans into a pivotal period for back to school and the holiday season, investors will watch how the new leadership aligns incentives, capital deployment, and guest experience to sustain momentum while managing costs.

Highlights

Leadership is tested in the months ahead as Target translates plans into measurable gains.