Goal Corp. on Aug. 20 named Chief Working Officer Michael Fiddelke as its subsequent chief govt officer, succeeding longtime CEO Brian Cornell, because the retailer reported quarterly earnings that topped Wall Road estimates regardless of a gross sales decline.
Fiddelke, a 20-year firm veteran who beforehand served as Goal’s chief monetary officer, will take over as CEO and be part of the board on Feb. 1, 2026, the corporate stated in an Aug. 20 release. Cornell, who has led the Minneapolis-based retailer since 2014, will transfer into the function of govt chair.
“Michael is the suitable chief to return Goal to development, refocus and speed up the corporate’s technique, and reestablish Goal’s place as a frontrunner within the extremely dynamic and fast-moving retail setting,” Christine Leahy, lead impartial director of the board, stated in an announcement.
The succession marks the tip of an period for Cornell, who’s extensively credited with steering Goal by way of a serious transformation. Underneath his management, the retailer leaned into its “shops as hubs” mannequin, expanded same-day companies corresponding to Drive Up, and constructed up a $30 billion portfolio of owned manufacturers. The board famous that in Cornell’s 11 years on the helm, Goal’s revenues grew by $34 billion, turning it right into a $100 billion-plus firm.
Cornell referred to as it a “privilege” to guide Goal and stated Fiddelke’s “outstanding stage of resolve within the face of advanced challenges” and keenness for development could be important in shaping the corporate’s subsequent section. Fiddelke, who has held management roles throughout merchandising, finance, operations, and human sources, stated he was moving into the function with “an pressing dedication to drive development and ship higher outcomes.”
The management announcement coincided with the release of second-quarter monetary outcomes. Internet gross sales edged down 0.9 p.c to $25.2 billion, whereas comparable gross sales declined 1.9 p.c. Retailer gross sales dropped 3.2 p.c, though that was partly offset by 4.3 p.c development in digital channels, fueled by demand for same-day companies.
Profitability fell extra sharply. Internet earnings dropped to $935 million, or $2.05 per share, from $1.19 billion, or $2.57 per share, in the identical quarter a yr earlier. Working earnings declined practically 20 p.c to $1.3 billion as increased markdowns, cancellation prices, and class combine weighed on margins.
Nonetheless, Goal’s income outcomes surpassed Wall Road expectations, providing a measure of resilience within the face of challenges. Analysts had forecast quarterly gross sales of $24.93 billion, in line with knowledge compiled by LSEG. The higher-than-expected top-line efficiency mirrored improved retailer visitors in contrast with the primary quarter and broad-based enhancements throughout Goal’s six core merchandising classes. Cornell stated the numbers confirmed “encouraging indicators of restoration,” pointing to stronger gross sales momentum in shops and disciplined price administration.
Throughout Cornell’s tenure, Goal additionally navigated important social and political headwinds. The corporate got here under fireplace in 2023 for promoting LGBT-themed attire and books for kids as a part of its annual Pleasure Month assortment. Conservative commentators urged boycotts, evaluating the backlash to the controversy that engulfed Bud Gentle after it partnered with an influencer who recognized as transgender. At one level, Goal lost greater than $10 billion in market worth because the boycott gained traction. The corporate later eliminated a number of the extra controversial objects, citing worker security and threats in shops.
Cornell defended Goal’s range, fairness, and inclusion (DEI) efforts, telling Fortune’s “Management Subsequent” podcast in 2023 that DEI insurance policies have been “good enterprise choices” that constructed engagement with clients and staff. However because the political and social temper shifted, Goal in early 2025 announced it could wind down a number of high-profile DEI initiatives, together with its racial fairness motion and alter (REACH) program and exterior participation within the Human Rights Marketing campaign’s company equality index. Executives stated the choice mirrored a have to “keep in keeping with the evolving exterior panorama.”
In its second-quarter earnings report, Goal additionally reaffirmed its full-year monetary outlook. The corporate continues to count on GAAP earnings of $8 to $10 per share, or $7 to $9 per share on an adjusted foundation, and forecasts a low-single-digit proportion decline in total gross sales for fiscal 2025.
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