Target (NYSE: TGT) has dropped more than 25% through 2025, highlighting a challenging period for the retailer. A combination of lackluster financial results, uncertainty regarding leadership changes, and competitive challenges has significantly impacted investor sentiment.
Target (NYSE: TGT) has done a great deal to ruin its own business.
Some investors had been hoping the retailer would tap an outsider to come in and shake things up. They got Michael Fiddelke instead.
Target's next CEO has been picked and it's no surprise. Target lifer Michael Fiddelke got the nod to replace Brian Cornell upon his retirement on Feb. 1, 2026.
Target's stock has been sinking, while Walmart's has been thriving. Here's why.
Target on Wednesday said that company veteran Michael Fiddelke will become its next CEO at a critical point in its effort to break out of a sales slump and win back Wall Street's favor. Fiddelke, the company's 49-year-old chief operating officer and former chief financial officer, will succeed Brian Cornell effective Feb. 1.
Yesterday Target took the long overdue step--in my humble opinion--of making a CEO change, announcing that current head honcho Brian Cornell will retire next February and chief operating officer Michael Fiddelke will replace him. They also helped me notch an early win for one of my 2025 predictions.
Target stock is attractively valued, with a 4.6% dividend yield, depressed multiples, and potential turnaround levers that can provide double-digit annualized returns over five years. Sales and traffic remain weak but are showing sequential improvement; digital and non-merchandise sales are leading growth, supporting TGT's $15B five-year sales growth plan. Skepticism surrounds the CEO transition, but deep company knowledge and digital strategy experience could aid the ongoing turnaround and margin recovery.
A redoubled focus on style “may not be enough in a retail landscape where convenience, selection and speed have rapidly evolved and redefined the competitive landscape,” according to one analyst.
Target Corp (NYSE:TGT) chief executive Brian Cornell will leave the US retailer after 11 years, handing the reins to long-time insider Michael Fiddelke. Cornell, who took over in 2014 and led a major turnaround including store remodels and e-commerce expansion, will step aside on February 1, but will remain executive chairman.
Target is a stronger company than in 2019, with higher sales, EPS, and dividends, yet its stock is now even more undervalued versus Walmart. Q2 results show early signs of recovery, with improving digital sales and sequential growth in key categories, despite negative same-store sales. Operational headwinds like inventory write-downs and supply chain costs are subsiding, and margins are expected to return to pre-pandemic levels by 2026.
Target veteran Michael Fiddelke won't become CEO for months, but the stock market is already disappointed with his appointment.