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Michael Fiddelke to become Target ( TGT ) CEO in Feb 2026

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Target's ( TGT ) Q2 net sales hit $25.2 billion, surpassing

estimates

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Keeps annual forecasts intact

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Target ( TGT ) stock has fallen 27% over the past year

By Siddharth Cavale and Juveria Tabassum

Aug 20 (Reuters) - Target ( TGT ) named insider Michael

Fiddelke on Wednesday as its new CEO to succeed long-time top

boss Brian Cornell, and beat quarterly estimates, helped by a

recovery in traffic at its stores and average receipts.

Target ( TGT ) also held on to its annual forecasts after lowering

them in May when it blamed weak demand for the largely

discretionary merchandise it sells like apparel and electronics

items.

Fiddelke, a 20-year company veteran most recently serving as

chief operating officer, will take the helm on February 1, 2026

with Cornell transitioning to the role of executive chairman,

the company said in a statement.

"My number one goal is to get us back to growth," Fiddelke

said during a media call on Target's ( TGT ) second-quarter earnings

report, which showed a 1.9% decline in comparable store sales,

smaller than analysts' expectations of a 3% drop.

Fiddelke, 49, said his three priorities are to improve the

quality of merchandise, value and style that Target ( TGT ) offers,

ensure a more consistent shopper experience and to embed more

technology in all parts of its business.

"We need to move faster, much faster," he said.

Over the past few years, Target ( TGT ) has grappled with a series

of challenges including merchandise missteps, retail crime, and

inventory management issues.

In the past year especially, it has struggled to maintain

consistent sales growth, faced boycotts and lawsuits related to

its diversity, equity, and inclusion (DEI) practices and

remained reliant on sourcing from countries affected by

broad-based tariffs imposed by U.S. President Donald Trump.

These pressures have weighed heavily on its stock, which has

declined 27% over the past year to Tuesday's close, when many of

its peers have seen gains.

DEEPER DISCOUNTS

The retailer has taken steps to turn itself around,

including intensifying efforts to entice customers worried about

the economy. These have included offering 10,000 new items

starting at $1, with most priced under $20, and launching

several affordable private label lines.

Still, consumers remain selective and are motivated by

promotions as inflation continues to strain household budgets,

Target ( TGT ) executives noted on the call.

Target ( TGT ) said deeper discounts helped bring more shoppers into

stores and boosted how much they spent. Store traffic improved

from a 2.4% drop in the first quarter to a smaller 1.3% decline

in the second. The average amount spent per visit also improved,

falling just 0.6% compared to a 1.4% drop in the previous

quarter.

Sales improved across all six main product categories:

apparel, beauty, food, home furnishings, hardlines, and

household essentials. The hardlines category, which includes

gaming devices such as the Nintendo Switch and other

electronics, performed best, growing 5% and posting its

strongest results since 2021.

On tariffs and pricing, the company reiterated its stance

from May, stating that price increases would be considered only

as a last resort. Cornell, who has led Target ( TGT ) for 11 years,

noted progress in diversifying the company's sourcing strategy.

This includes reducing reliance on store-brand products from

China and leveraging Target's ( TGT ) scale to navigate the tariff

landscape more effectively.

Target ( TGT ) reported second-quarter net sales of $25.21 billion,

beating estimates of $24.93 billion, according to data compiled

by LSEG. Excluding items, the company reported earnings per

share of $2.05, which topped Wall Street estimates by 2 cents.

Like Target ( TGT ), home improvement company Home Depot ( HD ) also

retained annual targets but warned of some price increases due

to tariffs.

Retail bellwether Walmart ( WMT ) reports quarterly results

on Thursday.

(Reporting by Juveria Tabassum in Bengaluru; Editing by

Muralikumar Anantharaman)