Target Shares Plunge After Insider CEO Appointment Despite Earnings Beat

Minneapolis, August 20, 2025 – Target Corporation’s (NYSE: TGT) stock fell over 10% in premarket trading today. This drop came after the unexpected promotion of an insider to CEO, even with a small beat in second-quarter results.

Target has named Michael Fiddelke, a 20-year veteran, as its new CEO. He will take over for Brian Cornell on February 1, 2026. Shares fell 10.39% as investors worried about promoting an internal candidate instead of outside ones. They feared this choice does not solve governance and leadership issues.

After a stable fiscal second quarter, Target reported adjusted earnings per share of $2.05. This beat the FactSet consensus of $2.04. Net sales reached $25.21 billion, just above the expected $24.94 billion. Comparable same-store sales went down by 1.9%. This was less than the 2.9% drop analysts had forecasted.

Management, despite the earnings surprise, kept its full-year guidance. They expect adjusted EPS of $7 to $9. Also, they foresee a slight decline in total sales, highlighting ongoing challenges in boosting growth. Christine Leahy, the lead independent director of Target’s board, announced the leadership change. She praised Fiddelke’s “unparalleled insight into the enterprise.” Leahy noted Fiddelke’s skill in “reestablishing Target’s position as a leader in the fast-moving retail environment.”

As Target enters the key back-to-school and holiday seasons, new leadership is in place. Investors will be watching Fiddelke closely to see if he can change four years of flat revenue and regain trust from shareholders and customers.