Target Shares Fall Over 9% on Sales Decline, CEO Transition Announced

Target Corp. reported its 11th consecutive quarter of flat or declining sales, with comparable sales falling 1.9% in the second quarter as in-store sales declines outweighed digital growth. Despite beating earnings and revenue expectations, the retailer's shares dropped sharply, reflecting investor skepticism amid ongoing challenges including inflationary pressures, consumer cutbacks, and eroding shopper and employee confidence. Target announced that longtime Chief Operating Officer Michael Fiddelke, a 20-year company veteran, will succeed CEO Brian Cornell on February 1, 2026, with Cornell transitioning to executive chair to maintain strategic continuity. The company reaffirmed its full-year guidance, expecting a low single-digit decline in sales and adjusted earnings per share between $7 and $9. Operating margins and gross margins contracted due to markdowns and purchase order cancellations, although all six core merchandising categories showed improvement compared to the previous quarter. Investors remain cautious, awaiting proof that the new leadership can reverse the sales slump and stabilize profitability.