All right, welcome back everybody. Some breaking news for you this morning from Target. The company is announcing a big change.The longtime CEO Brian Cornell is going to be leaving the top job as of February 1st of next year. And he will become the executive chair of the board of directors. He's going to be replaced as CEO by Target's chief operating officer, Michael Fideli, who was elected unanimously by the board.Now, this news does come as Target reports its second quarter results this morning. If you're ...

Core Viewpoint - Target CEO Brian Cornell will step down next year after over a decade, as the company aims to revitalize growth and address declining sales [1][2] Leadership Transition - Michael Fiddelke, the current COO, has been elected to succeed Cornell and will join the Board of Directors on February 1 [1] - Fiddelke has been with Target for 20 years and has played a key role in building the company's core strengths across various departments [3][6] Financial Performance - In the latest fiscal quarter, Target reported $25.2 billion in sales, a decrease of just under 1% year-over-year, with in-store sales dropping over 3% while online sales grew slightly over 4% [8] - The company's profit for the quarter was $1.3 billion, down approximately 19% from the previous year [8] Strategic Initiatives - Target has launched a multi-year growth initiative called the Enterprise Acceleration Office to enhance operational agility and resilience [11][13] - The company anticipates a low-single digit decline in sales for fiscal 2025, revising its previous forecast of net sales growth [14]

格隆汇8月20日｜塔吉特(TGT.US) 仍预计财年销售额将实现低个位数下降，市场预测降幅为-1.71%。 ...

格隆汇8月20日｜TARGET(塔吉特)：二季度净销售额为252.1亿美元，预估为249.3亿美元；二季度毛利 率为29%；调整后每股收益2.05美元，预估2.01美元。TARGET预计本财年销售额仍将呈现低个位数的 下降，预估下降1.71%；仍预计全财年经调整后每股收益约7美元-9美元，市场预估7.29美元。塔吉特任 命首席运营官Michael fiddelke为新任首席执行官。 ...

Executive Summary & Key Highlights [Second Quarter 2025 Performance Overview](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Overview) Target's Q2 2025 GAAP and Adjusted EPS decreased to $2.05, with net sales of $25.2 billion (down 0.9%), showing improved traffic and digital sales growth Second Quarter 2025 Key Financial Highlights | Metric | Q2 2025 | Q2 2024 | Change (%) | | :-------------------------------- | :------ | :------ | :--------- | | GAAP and Adjusted EPS (Diluted) | $2.05 | $2.57 | (20.2)% | | Net Sales | $25.2 B | $25.45 B| (0.9)% | | Digital Comparable Sales Growth | 4.3% | - | - | | Non-Merchandise Sales Growth | 14.2% | - | - | - Traffic and sales trends improved meaningfully compared with the first quarter, particularly in stores, with all six core merchandising categories seeing comparable sales improvements[2](index=2&type=chunk) - Strong expense management and efficiency gains helped offset continued tariff-related and other cost pressures[2](index=2&type=chunk) [Leadership Appointment](index=1&type=section&id=Leadership%20Appointment) Target's Board of Directors unanimously appointed Michael Fiddelke as the next CEO, with current CEO Brian Cornell expressing full confidence in his leadership - Michael Fiddelke unanimously appointed as Target's next CEO by the Board of Directors[1](index=1&type=chunk)[3](index=3&type=chunk) - Brian Cornell expressed full confidence in Fiddelke's leadership to drive improved results and sustainable growth, citing his deep understanding of the business and critical role in establishing differentiated capabilities[3](index=3&type=chunk) [Fiscal Year 2025 Guidance](index=2&type=section&id=Fiscal%20Year%202025%20Guidance) For fiscal 2025, Target maintains its expectation of a low-single digit decline in sales, with GAAP EPS projected between $8.00 and $10.00 Fiscal Year 2025 Guidance | Metric | Guidance | | :-------------------------------- | :---------------- | | Sales Decline | Low-single digit | | GAAP EPS | $8.00 - $10.00 | | Adjusted EPS (excluding Q1 gains) | ~$7.00 - $9.00 | Financial Performance Analysis [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Target's Q2 2025 consolidated operations show a 0.9% net sales decrease to $25.2 billion, leading to a 19.4% decline in operating income and a 21.5% decrease in net earnings Consolidated Statements of Operations (Three Months Ended) | Metric (millions) | August 2, 2025 | August 3, 2024 | Change (%) | | :-------------------------------- | :------------- | :------------- | :--------- | | Net sales | $25,211 | $25,452 | (0.9)% | | Cost of sales | $17,903 | $17,826 | 0.4% | | Selling, general and administrative expenses | $5,359 | $5,365 | (0.1)% | | Operating income | $1,317 | $1,635 | (19.4)% | | Net earnings | $935 | $1,192 | (21.5)% | | Diluted earnings per share | $2.05 | $2.57 | (20.2)% | [Net Sales and Revenue Breakdown](index=5&type=section&id=Net%20Sales%20and%20Revenue%20Breakdown) Merchandise sales decreased by 1.2% in Q2 2025, partially offset by a 14.2% increase in non-merchandise sales, with varied performance across categories Net Sales Breakdown (Three Months Ended) | Category (millions) | August 2, 2025 | August 3, 2024 | Change (%) | | :-------------------------------- | :------------- | :------------- | :--------- | | Merchandise sales | $24,719 | $25,021 | (1.2)% | | Advertising revenue (Roundel) | $217 | $162 | 34.0% | | Credit card profit sharing | $134 | $144 | (6.9)% | | Other non-merchandise sales | $141 | $125 | 12.8% | | Total Net Sales | $25,211 | $25,452 | (0.9)% | Merchandise Sales by Category (Three Months Ended) | Category (millions) | August 2, 2025 | August 3, 2024 | Change (%) | | :-------------------------------- | :------------- | :------------- | :--------- | | Apparel & accessories | $4,086 | $4,261 | (4.1)% | | Beauty | $3,396 | $3,384 | 0.4% | | Food & beverage | $5,588 | $5,538 | 0.9% | | Hardlines | $3,522 | $3,322 | 6.0% | | Home furnishings & décor | $3,662 | $3,908 | (6.3)% | | Household essentials | $4,422 | $4,564 | (3.0)% | [Profitability and Margins](index=3&type=section&id=Profitability%20and%20Margins) The operating income margin rate for Q2 2025 decreased to 5.2% from 6.4%, primarily due to a lower gross margin rate despite disciplined SG&A expense management Margin Rates (Three Months Ended) | Metric | August 2, 2025 | August 3, 2024 | Change (pp) | | :-------------------------------- | :------------- | :------------- | :---------- | | Operating income margin rate | 5.2% | 6.4% | (1.2) | | Gross margin rate | 29.0% | 30.0% | (1.0) | | SG&A expense rate | 21.3% | 21.1% | 0.2 | - Gross margin rate decline was due to higher markdown rates, purchase order cancellation costs, and pressure from category mix, partially offset by lower inventory shrink and growth in advertising and non-merchandise sales[7](index=7&type=chunk) - SG&A expenses were **0.1% lower** than in 2024, driven by disciplined cost management offsetting increased investments in store remodels and general cost increases[7](index=7&type=chunk) [Earnings Per Share](index=1&type=section&id=Earnings%20Per%20Share) Diluted EPS for Q2 2025 was $2.05, a 20.2% decrease from $2.57 in Q2 2024, reflecting the overall decline in net earnings Earnings Per Share (Three Months Ended) | Metric | August 2, 2025 | August 3, 2024 | Change (%) | | :-------------------------------- | :------------- | :------------- | :--------- | | Basic earnings per share | $2.06 | $2.58 | (20.2)% | | Diluted earnings per share | $2.05 | $2.57 | (20.2)% | | Weighted average common shares outstanding (Diluted) | 455.6 million | 463.5 million | (1.7)% | [Consolidated Statements of Financial Position](index=6&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) As of August 2, 2025, Target reported total assets of $57.85 billion, a slight increase, with inventory up and long-term debt rising to $15.32 billion Consolidated Statements of Financial Position (Selected Data) | Metric (millions) | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :-------------------------------- | :------------- | :--------------- | :------------- | | Cash and cash equivalents | $4,341 | $4,762 | $3,497 | | Inventory | $12,881 | $12,740 | $12,604 | | Total assets | $57,851 | $57,769 | $55,995 | | Total current liabilities | $19,223 | $20,799 | $19,984 | | Long-term debt and other borrowings | $15,320 | $14,304 | $13,654 | | Total shareholders' investment | $15,420 | $14,666 | $14,429 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended August 2, 2025, cash provided by operating activities decreased to $2.36 billion, while investing activities required more cash, and financing activities showed improved outflow Consolidated Statements of Cash Flows (Six Months Ended) | Metric (millions) | August 2, 2025 | August 3, 2024 | | :-------------------------------- | :------------- | :------------- | | Cash provided by operating activities | $2,358 | $3,339 | | Cash required for investing activities | ($1,853) | ($1,305) | | Cash required for financing activities | ($926) | ($2,342) | | Net decrease in cash and cash equivalents | ($421) | ($308) | | Cash and cash equivalents at end of period | $4,341 |

Target's CEO is stepping down after 11 years at the retailer, as sales continue to plunge.https://t.co/gOrWf9ap8B ...

Target's CEO is stepping down after 11 years at the retailer, as sales continue to plunge.https://t.co/C6tHWX4Dkp ...

Target names veteran Michael Fiddelke as its next chief executive officer, betting that the insider will rejuvenate sales https://t.co/pnQ8WFYdZV ...

Target has picked Michael Fiddelke, a lifelong employee and chief operating officer, to become its new CEO in February https://t.co/MPT6LUjgil ...

Core Viewpoint - Target has appointed Michael Fiddelke as the new CEO, effective February 1, as the company seeks to recover from a sales slump and regain investor confidence [2][3]. Company Leadership Transition - Michael Fiddelke, a 20-year veteran of Target, will succeed Brian Cornell, who has led the company since 2014 and will transition to the role of executive chair [2][5]. - Fiddelke's appointment comes at a crucial time as Target aims to reverse a trend of flat annual sales over the past four years [3][6]. Financial Performance - Target reported fiscal second-quarter results that exceeded Wall Street's expectations for sales and earnings, yet maintained a full-year outlook predicting a low-single-digit percentage decline in sales [3][6]. - The company's stock has seen a significant decline, dropping about 60% since its peak in 2021, with a 22% decrease in 2025 alone [7]. Strategic Priorities - Fiddelke has outlined three main priorities: restoring Target's reputation for stylish and unique merchandise, enhancing customer experience consistency, and leveraging technology for operational efficiency [4][12]. - He emphasized the need to rebuild momentum and return to profitable growth [4][12]. Market Challenges - Target faces increased competition from rivals like Walmart and is dealing with cost pressures due to tariffs, alongside backlash from changes in diversity, equity, and inclusion policies [8]. - The company is also ending its partnership with Ulta Beauty, which involved mini beauty shops in Target stores, set to conclude in August 2026 [9]. Investor Sentiment - A survey indicated that 96% of investors preferred an external candidate for the CEO position, highlighting a desire for fresh ideas [10]. - Despite this, the board selected Fiddelke after an extensive search, citing his deep understanding of the business and the trust he has built within the team [10][11].