11:09 AM EDT, 08/20/2025 (MT Newswires) -- Target ( TGT ) affirmed its full-year outlook as the retailer maintained a cautious approach amid tariff-related headwinds, while announcing a new chief executive.

For fiscal 2025, the company continues to expect adjusted per-share earnings of $7 to $9 and a low-single digit decline in sales. It reported adjusted EPS of $8.86 and revenue of $106.57 billion for the prior year. Analysts surveyed by FactSet expect non-GAAP EPS and revenue of $7.28 and $104.86 billion, respectively.

"While our (second-quarter) performance reinforce our confidence that we can deliver on that guidance, we're still facing a highly volatile and uncertain environment and believe it is prudent to maintain a cautious approach in the back half of the year," Chief Financial Officer Jim Lee said on an earnings call with analysts, according to a FactSet transcript.

The tariff landscape remains "challenging," CEO Brian Cornell said on the call.

Target ( TGT ) announced that Chief Operating Officer Michael Fiddelke will succeed Cornell as CEO, starting Feb. 1. Cornell will become executive chair on the same date.

"We've identified the biggest challenges that slow us down -- legacy technology that doesn't meet today's needs, manual work that can be automated, unclear accountabilities, slow decision-making, siloed goals, and a lack of access to quality data," Fiddelke said on the call.

Fiddelke's appointment may not sit well investors who were looking for an external candidate to take the reins at the company, Truist Securities said.

"While Mr. Fiddelke has a ton of experience at Target ( TGT ), filling multiple C-level roles, we believe many investors were looking for a 'fresh' view of how to turn around Target ( TGT ), which could realistically only come from the outside," Truist Managing Director Scot Ciccarelli said in a note e-mailed to MT Newswires.

The stock was down 7.8% in Wednesday trade, and has lost 28% of value so far this year.

For the second quarter ended Aug. 2, adjusted EPS fell to $2.05 from $2.57 a year earlier, narrowly surpassing the $2.04 consensus estimate. Sales dropped 0.9% to $25.21 billion, but topped analysts' $24.94 billion view.

Second-quarter comparable sales fell 1.9%, driven by weakness in store sales. Still, that was better than market expectations for a 2.9% decline.

"While we were happy to see improvement in (the second quarter), we are far from satisfied with where our business is performing today," Cornell told analysts. "We need to do better, and our entire team is focused on consistent execution, building further momentum and getting back to profitable long-term growth."

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