CEO of Target departs as customer base dwindles
Target, once a thriving retail giant, is currently navigating a difficult retail landscape under the leadership of its new CEO, Michael Fiddelke. Fiddelke, who started as an intern at Target and has been with the company for 20 years, took over from Brian Cornell on February 1, 2026.
Cornell, who was named CNN Business' CEO of the Year in 2019, led a turnaround at Target, steering the company through the pandemic in 2020 and 2021. However, the company's stock has been among the worst performing in the S&P 500 this year.
The challenges facing Target are evident in the company's recent financial performance. In Q2 2025, Target reported a 19.4% drop in operating income compared to the previous year, and a low-single digit decline in sales for fiscal 2025. The second quarter 2025 net sales were $25.2 billion, down 0.9% year-over-year, with merchandise sales declining 1.2%.
Despite these struggles, Target's digital sales are growing. Digital comparable sales grew 4.3%, driven by over 25% growth in same-day delivery services and continued uptake of Drive Up (curbside pickup).
To address these challenges, Target is focusing on expanding digital and same-day delivery services, increasing non-merchandise revenue streams such as advertising via Roundel and membership programs, and continued investments in store remodels with disciplined cost management to improve customer experience without disproportionately raising expenses.
The company is also making changes to its merchandise selection to mitigate the impact of tariffs. Fiddelke stated that Target has been able to navigate tariffs so far and will raise prices as a last resort.
However, Target has faced backlash over its LGBTQ-themed merchandise and its retreat on DEI (Diversity, Equity, and Inclusion) policies. The decision to end some of its DEI programs earlier this year angered supporters of diversity and inclusion policies.
The search results do not provide current details on how leadership under Michael Fiddelke is addressing these issues. However, given the known past controversies and backlash, this remains a potential reputational and internal culture challenge for Target to manage alongside its financial and competitive challenges.
In summary, under Michael Fiddelke, Target is navigating ongoing declines in overall sales and profitability amid stiff competition and challenging market conditions, but is leveraging digital growth and new revenue channels as part of its future strategy. The company maintains cautious financial guidance for 2025, reflecting both the difficulties in the retail environment and efforts to stabilize and adapt.
[1] Target Q2 2025 Earnings Release, Target Newsroom [2] Target Q2 2025 Earnings Call Transcript, Seeking Alpha [3] Target Fiscal 2025 Guidance, Target Newsroom [4] Target Corporation Profile, Yahoo Finance [5] Target's Fitch Ratings, Fitch Ratings
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