On Wednesday, Target announced a pivotal leadership change, appointing company veteran Michael Fiddelke as its next CEO. This transition comes at a critical juncture as the retailer seeks to navigate through a prolonged sales slump and regain the favor of Wall Street. Fiddelke, who currently serves as the company's 49-year-old chief operating officer and has previously held the position of chief financial officer, will officially take over from Brian Cornell on February 1. Cornell, who has led the trendy discount retailer since 2014, will shift to the role of executive chair on Target's board of directors.
The announcement coincided with Target's release of its fiscal second-quarter results, which exceeded Wall Street's expectations for both quarterly sales and earnings. However, despite these positive results, the company maintained its full-year outlook, projecting another decline in annual sales. Following the CEO announcement and fiscal report, Target's shares fell approximately 10% in premarket trading.
Before Target's decision, many on Wall Street appeared to favor an outsider for the CEO role. Fiddelke now steps into this prominent position as the retailer works to stabilize its operations and return to a growth trajectory. Over the past four years, Target's annual sales have remained largely stagnant, particularly after experiencing a surge during the Covid pandemic.
In a call with reporters, Fiddelke expressed a sense of urgency to rebuild momentum and achieve profitable growth. He outlined three key priorities for his leadership: reestablishing Target's reputation as a retailer known for stylish and unique items, enhancing the consistency of the customer experience, and leveraging technology to create a more efficient business operation. “We’ve built a solid foundation, and we’re proud of the many ways that Target is unique in American retail,” he stated. “We also have real work in front of us.”
Fiddelke is not new to Target; he is a seasoned veteran with over 20 years of experience within the company. Throughout his career, he has held various leadership roles across multiple departments, including merchandising, finance, operations, and human resources. He became Target's chief financial officer in late 2019 and transitioned to the chief operating officer role in early 2024. In May, he was appointed to lead the newly established Enterprise Acceleration Office, aimed at reversing Target's declining results.
Target's performance has raised concerns among investors, with the company’s stock plummeting nearly 60% since reaching its all-time high in 2021. As of Tuesday's close, the stock had already fallen 22% in 2025. Feedback from customers, former employees, and suppliers suggests that Target's once-prominent qualities—such as eye-catching merchandise, well-organized stores, and friendly staff—have diminished. In addition, the retailer faces intensified competition from rivals like Walmart, while also dealing with cost pressures due to tariffs and backlash over its reversal of essential diversity, equity, and inclusion policies.
Furthermore, last week, Ulta Beauty and Target announced the conclusion of their partnership that had introduced mini beauty shops in nearly a third of Target's locations, set to end in August 2026.
According to a June survey by Mizuho Securities, a notable 96% of investors preferred an external candidate for the CEO position. However, Christine Leahy, lead independent director of Target's board, emphasized that Fiddelke was chosen after a comprehensive external search and evaluation of numerous strong candidates over the years. “Michael’s tenure gives him unmatched enterprise insight and a base of strong team trust,” she stated. “What sets him apart is how he combines those strengths with a 'fresh eyes' mindset, challenging the status quo to evolve how the business operates, differentiates, and delivers long-term value.”
During the same call, when asked about the preference for an outsider, Fiddelke reassured investors of his understanding of the business, stating, “I understand what makes Target distinctly unique. I’ve seen us at our best, and I’ve seen us when we’re not at our best, and that informs my candid assessment today of where we have work to do as well. My number one goal is to get us back to growth.”
