Target Corporation (NYSE:TGT) shares slid more than 10% in premarket trading on Wednesday after the retailer unveiled a leadership transition alongside quarterly results that, while narrowly topping forecasts, underscored continued weakness in sales.
For the fiscal second quarter, Target reported adjusted earnings of $2.05 per share, just above analyst expectations of $2.04. Revenue reached $25.2 billion, beating the $24.9 billion consensus. Despite the beat, net sales were down 0.9% from the year-ago period, though that was an improvement from the steeper drop in the first quarter.
The company also announced that Chief Operating Officer Michael Fiddelke will succeed Brian Cornell as CEO on February 1, 2026. Cornell will move into the role of executive chair of the Board.
“It is truly an honor to be named Target’s next chief executive officer,” Fiddelke said. “I am eager to refocus our strategy and build on the assets and capabilities that have made Target a beloved destination for incredible products and a one-of-a-kind shopping experience. And to be clear, we have work to do to reach our full potential.”
Target reaffirmed its full-year outlook, guiding for a low-single-digit sales decline and adjusted EPS between $7.00 and $9.00, compared with Wall Street’s $7.34 forecast.
Comparable sales fell 1.9% in Q2, as a 3.2% drop in store sales was partially offset by a 4.3% increase in digital sales. The company’s operating income margin shrank to 5.2% from 6.4% a year earlier, while gross margin narrowed to 29.0% from 30.0%, pressured by higher markdowns and costs tied to canceled purchase orders.
Even so, Target highlighted that all six of its core merchandising categories showed sequential improvement compared with the first quarter, with digital channels leading growth—same-day delivery surged more than 25%.
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