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Target Picks Insider Michael Fiddelke as Next CEO as Shares Slide on Weak Quarter

Wall Street balked at the insider pick after another soft quarter.

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Overview

  • Target said Chief Operating Officer Michael Fiddelke, a 20-year company veteran and former CFO, will become CEO on Feb. 1, 2026 as Brian Cornell transitions to executive chair.
  • The stock fell roughly 7%–10% in early trading following the announcement, with several analysts saying they had hoped for an external leader.
  • Fiscal second-quarter results showed continued softness: comparable sales down 1.9%, operating margin at 5.2% versus 6.4% a year ago, net sales of $25.21 billion, and EPS of $2.05 as the company reaffirmed its full-year outlook.
  • Fiddelke outlined a three-part plan to revive growth by restoring style-led merchandising, tightening in-store execution, and expanding technology use, including the “Fun 101” initiative.
  • Executives flagged tariff pressures and reputational fallout from DEI rollbacks and related boycotts, while noting efforts to diversify sourcing away from China and intensifying competition from Walmart and Costco.