Target names new CEO amid slower sales

Target announces a leadership transition as it reports slower sales and ongoing profit pressure.

Target CEO to step down as sales remain sluggish

Target said Chief Operating Officer Michael Fiddelke will become chief executive on February 1, with current CEO Brian Cornell moving to executive chair of the board. The move comes as Target reports weaker sales over a three-month period ending in August, with net income down 21% year over year even as revenue rose from the prior quarter. The company also faced public backlash tied to its Pride collection and the rollback of its diversity, equity and inclusion policies, issues Cornell acknowledged in the earnings release.

Shares fell about 8% in early trading after the update. Target, which operates nearly 2,000 stores, is negotiating prices with suppliers to blunt tariff-related cost increases, while signaling it will keep price as a last resort and focus on value. Executives stressed that the back-to-school and holiday seasons remain a key window to regain momentum and that the management team will pursue steady execution to build momentum in the new year.

The leadership change signals the board’s attempt to blend continuity with a reset in a tough retail climate. Fiddelke’s ascent could reassure investors who value steadiness, but his ability to translate a cautious tone into stronger demand will be tested by ongoing cost pressures and public scrutiny over past policy moves. The timing, close to the crucial back-to-school and holiday shopping periods, places emphasis on execution over drama and on concrete steps to align pricing, promotions, and supply chain costs with consumer expectations.

This moment also highlights a broader tension facing Target: how to balance value for price-sensitive shoppers with investments needed to modernize the business. Tariff-related cost pressures, supplier negotiations, and the fallout from earlier controversies could weigh on margins if not managed carefully. If the new leadership can turn headwinds into disciplined, visible progress, Target could stabilize and begin to regain trust; if not, the stock and the brand could remain volatile in a consumer market that rewards consistency.

Highlights

The next year will test Target’s ability to translate leadership change into a clearer path to growth.