MINNEAPOLIS — Target’s incoming chief executive, Michael Fiddelke, vowed Wednesday to restore the retailer’s lost “swagger” after years of sluggish sales, cultural controversies, and eroding customer confidence. The bold promise came on the same day Target posted another quarter of falling results and announced that longtime CEO Brian Cornell will step aside in February. Investors greeted the double dose of news by driving Target’s shares down nearly 10%, deepening a four-year stock rout that has erased billions in market value.
“Swagger” as a Strategy
“When we’re leading with swagger in our merchandising authority, when we have swagger in our marketing and we’re setting the trend for retail — those are some of the moments I think that Target has been at its highest in my 20 years,” Fiddelke told analysts and reporters.
The 49-year-old chief operating officer, a two-decade company veteran, will take over as CEO on Feb. 1, 2026. Cornell, who has led the Minneapolis-based retailer for 11 years, will transition to the role of executive chair.
The choice of an internal successor was not what many on Wall Street had hoped for. Some investors had pressed for an external candidate to bring a fresh perspective to a company that has now posted flat or declining comparable sales in nine of the past 11 quarters. Analysts warned that elevating a company insider risks reinforcing “groupthink” at a moment when change is urgent.
Earnings Snapshot
Target’s second-quarter numbers highlighted the scale of the challenge ahead:
- Net sales: $25.2 billion, down 0.9% year-over-year.
- Comparable sales: Down 1.9%, the 11th straight quarter of flat or declining comps.
- Net income: $935 million, down 21% year-over-year.
- Digital sales: Up 4.3%, driven by same-day services like Drive Up and Target Circle 360.
- Full-year outlook: Low single-digit sales decline; adjusted EPS between $7 and $9.
Though the results beat Wall Street’s muted expectations, they reinforced the narrative of a retailer that has struggled to regain momentum after its pandemic-era boom.
Challenges Ahead
Fiddelke inherits a business weighed down by a host of problems:
- Competitive losses: Walmart, Costco, Amazon, and TJX are gaining share, particularly among higher-income shoppers.
- Customer dissatisfaction: Complaints about messy stores, long checkout lines, and frequent out-of-stock items have increased.
- Cultural backlash: Target has drawn fire for pulling back from its diversity initiatives and for its handling of LGBTQ+ Pride merchandise, fueling consumer boycotts.
- Inventory missteps: Pandemic-era excess stock and a weak discretionary mix continue to haunt margins.
- Employee morale: A June survey found 40% of workers lacked confidence in the company’s future.
Fiddelke said his turnaround agenda will focus on three priorities: reviving Target’s reputation for stylish, trend-driven merchandise, elevating the shopping experience both online and in-store, and accelerating investments in technology to simplify operations.
Market’s Reaction
Despite those pledges, Wall Street was skeptical. Target shares fell as much as 10% in Wednesday trading, making it one of the S&P 500’s biggest losers of the day. The stock is down more than 60% from its all-time high reached four years ago, even as rivals have continued to soar.
“The Street was looking for a fresh pair of eyes that might bring a solution to two years of stumbles,” Stacey Widlitz, president of investment research firm SW Retail Advisors, said to AP. Another called the appointment a “disappointment for investors hoping for a bolder reset.”
Still, Target’s board defended the choice. Lead independent director Christine Leahy said Fiddelke combines “unmatched enterprise insight” with a “fresh eyes mindset” that will allow him to challenge the status quo.
Cornell’s Legacy and Fiddelke’s Test
Cornell, 66, is credited with modernizing Target’s stores, expanding its stable of private-label brands, and building a digital platform that helped the company thrive during the pandemic. Under his watch, annual sales surged from $78 billion in 2019 to a peak of $109 billion in 2022. But as inflation squeezed households and shoppers shifted toward essentials and lower-cost competitors, Target’s momentum fizzled.
Now, as Cornell moves to the boardroom, the task of reviving “Tar-zhay” falls to Fiddelke. His success will hinge on whether he can deliver on the swagger he invoked — turning it from a catchphrase into a credible strategy.
“Mission 1, 2, 3, 4, 5 is growth,” Fiddelke said. “We’ve got to get back to setting the trend in retail.”
