Target names next CEO; beats Street with Q2 profits, sales
Target Corp. is announcing its CEO succession plan as it exceeds Wall Street expectations for the second quarter.
The discount giant has tapped company veteran Michael Fiddelke, who currently serves as COO, to take the reins as CEO as of Feb. 1, 2026. Fiddelke will suceed current CEO Brian Cornell, who has held the chief executive role at Target since 2014 and will transition to executive chair of the board of directors. During his 20-year career at Target, Fiddelke has held leadership roles across merchandising, finance, operations and human resources.
In May 2025, Fiddelke was selected to oversee a new department — the Enterprise Acceleration Office — which was tasked to look into ways to drive greater speed and agility across the company on the heels of rough first quarter.
[READ MORE: Target sales fall, cuts outlook; announces leadership changes, new office]
Fiddelke will continue running the new department when he assumes the position of CEO. As COO, and previously CFO, he has overseen efforts including investments to build and scale the company's stores, supply chain, digital capabilities and team, as well as enterprise efforts to deliver more than $2 billion in efficiencies.
Fiddelke also has been involved in increasing employee wages and development programs like the Dream to Be college education benefit.
"It is truly an honor to be named Target's next chief executive officer,” said Fiddelke. “I am eager to refocus our strategy and build on the assets and capabilities that have made Target a beloved destination for incredible products and a one-of-a-kind shopping experience. Now's the time to take full advantage of our strengths, embrace change with pace and purpose, and regain our momentum."
Fiddelke will work with Cornell throughout the CEO transition period. Target said it will announce its next COO at a later date.
Target profits and sales slump, but exceed expectations
Target reported year-over-year declines in net earnings and sales for the second quarter of fiscal 2025, but still came out ahead of Wall Street predictions.
Net earnings dropped 21.5% to $935 million from $1.2 billion the first quarter of fiscal 2025, with adjusted earnings per share (EPS) falling to $2.05 from $2.57. Net sales declined 1% to $25.2 billion from $25.4 billion.
In addition, comparable sales decreased 1.9% year-over-year, reflecting a comparable store sales decline of 3.2% that was partially offset by the bright spot of comparable digital sales growth of 4.3%. Digital growth reflected more than 25% improvement in same-day delivery provided by the paid Target Circle 360 membership program and continued growth in its Drive Up curbside pickup option.
The retailer also said traffic and sales trends improved “meaningfully” from its difficult first quarter, especially in its brick-and-mortar stores.
For fiscal 2025, the company is maintaining its guidance for a low-single digit decline in sales, and GAAP EPS of $8.00 to $10.00. Adjusted EPS, which excludes the gains from litigation settlements in the first quarter, is expected to be approximately $7 to $9.
"With the board's unanimous decision to appoint Michael Fiddelke as Target's next CEO, I want to express my full confidence in his leadership and focus on driving improved results and sustainable growth," said CEO Brian Cornell. "He's contributed meaningfully during times of change and played a critical role in establishing the differentiated capabilities that will continue to drive Target forward."
"Today, we also reported our second quarter earnings, which showed encouraging signs of recovery, including improved traffic and sales trends — particularly in our stores — and disciplined cost management in a challenging retail environment," Cornell said. "As we enter the critical back-to-school and holiday seasons, our team remains focused on consistent execution and building momentum as we look ahead to the new year."
Headquartered in Minneapolis, Target operates nearly 2,000 stores across the U.S. and an e-commerce site.
