In today’s CEO Daily: Phil Wahba digs into two retail CEOs’ succession plans. The big story: Nvidia reports blockbuster earnings. The markets: Nvidia sparks a rally. Plus: All the news and watercooler chat from Fortune. Good morning. This week, a pair of earnings reports—those of Walmart and Target—offer up a reminder of how tricky CEO succession planning can be. Both retailers’ CEOs—Walmart’s Doug McMillon and Target’s Brian Cornell—started in 2014 and are leaving in February, handing their companies ...

US retailer Target has reported lower third-quarter sales for the period ended 1 November 2025, and has outlined plans to increase investment in stores and digital operations in 2026. Net sales fell 1.5% to $25.27bn as the retailer works to halt three consecutive quarters of declining comparable sales. In August 2025, Target announced the appointment of Michael Fiddelke as its new CEO, effective from 1 February 2026. In October, the company moved to cut 1,800 corporate positions as part of efforts to re ...

Giving people precise instructions on how to behave when a shopper is close by risks making grumpy workers even grumpier. Target’s new customer service programme could backfire in three ways https://t.co/CieA3egnwE ...

Core Viewpoint - Target's third-quarter same-store sales declined for the third consecutive quarter, down 2.7% year-over-year, which was below expectations. The company lowered its full-year profit guidance to $7-$8, reflecting ongoing weak demand, declining foot traffic, and pricing pressures [1][3][4]. Financial Performance - Same-store sales fell 2.7% year-over-year, with comparable store sales down 3.8%. Transaction counts decreased by 2.2%, and average transaction value dropped by 0.5%. Digital sales grew by 2.4%, and same-day delivery surged by 35%, with digital sales accounting for 19.3% of total sales, up from 18.5% a year ago [4][5]. - Total net sales decreased by 1.5% to $25.27 billion, falling short of the expected $25.33 billion [4]. - Net profit dropped by 21.3% to $859 million, with adjusted earnings per share down 3.9% to $1.78, exceeding the expected $1.71 [5]. Future Outlook - The company anticipates a low single-digit percentage decline in sales for the fourth quarter and has adjusted its full-year adjusted earnings per share guidance from $7-$9 to $7-$8 [6]. - Target's stock price fell 5% in pre-market trading, nearing its lowest closing price since mid-2019, with a cumulative decline of 34.5% since 2025, while competitors like Walmart saw a 12.2% increase during the same period [6]. Leadership Changes - Incoming CEO Michael Fiddelke expressed dissatisfaction with current performance and plans to increase capital expenditures to $5 billion, a 25% increase, aimed at store renovations, new openings, and enhancing product offerings and shopping experiences [11][12]. - Fiddelke emphasized the need for operational reforms and will not wait for macroeconomic improvements to drive changes [10][11]. Strategic Initiatives - Target is collaborating with OpenAI to enhance its AI capabilities, allowing customers to use ChatGPT for personalized shopping experiences [12][13]. - The company has also undergone a significant restructuring, eliminating 1,800 positions to streamline operations and improve management efficiency [14]. Market Challenges - Target faces ongoing challenges from inflation, leading consumers to reduce spending on non-essential items, which constitute a significant portion of its sales [15]. - Analysts have raised concerns about Target's ability to regain its leadership in design and style, with long-term sales and profit margin risks exacerbated by competition from Walmart and Amazon [15][16].

Core Viewpoint - Target has reduced its full-year earnings outlook and expects a sales decline in the current quarter, indicating a cautious approach as the holiday season approaches [1][4] Group 1: Financial Performance - Comparable sales decreased by 2.7% in the third quarter, which was worse than the consensus expectation of a 2.06% decline [3] - Digital sales increased by 2.4%, falling short of Wall Street's estimate of 3.45% [3] - Quarterly earnings per share (EPS) reached $1.78, surpassing expectations of $1.73, aided by stronger results from the Roundel advertising division [3] Group 2: Market Conditions - The retailer is facing an uncertain macroeconomic environment influenced by broad U.S. tariffs and a prolonged federal government shutdown, leading to consumer hesitation on discretionary spending [2] - Target is losing market share to Walmart, which has enhanced its delivery capabilities and focused on essential goods [2] Group 3: Operational Challenges - Operational issues such as understaffing and inventory mismanagement are putting additional pressure on performance, despite growth in e-commerce [2] Group 4: Earnings Guidance - Target now expects adjusted full-year earnings to be between $7 and $8 per share, a reduction from the previous range of $7 to $9 [4]

Core Insights - Target is shifting its strategy by investing billions in physical stores and technology to recover from a sales slump, contrasting with competitors like Amazon and Walmart that focus on AI and e-commerce [1] - The retailer plans approximately $5 billion in capital spending for the next year, with an additional $1 billion earmarked for 2026, targeting growth in resilient categories like beauty [2][5] - Target's investment will enhance new and remodeled stores, experience upgrades, and technology, emphasizing larger-format stores that exceed initial performance expectations [3] Financial Performance - Target is facing challenges with Q3 net sales down 1.5%, comparable sales down 2.7%, and net earnings decreasing by 19.3%, indicating a prolonged period of sluggish sales [5] - The company is experiencing a shift in consumer behavior, with value-focused shoppers prioritizing essentials, while competitors are gaining market share [5] Consumer Trends - Gen Z is showing a renewed interest in in-person shopping, particularly in beauty, which supports Target's investment in high-touch retail experiences [6][7] - The preference for brick-and-mortar stores among younger consumers is evident, as they seek tactile experiences and personalized consultations that digital platforms cannot provide [7] Technological Integration - Target's strategy includes leveraging AI for product development and marketing, utilizing synthetic audiences for campaign testing, and implementing a ChatGPT-powered beta for simplifying multi-item purchases [4]

Retail analyst and expert Jan Rogers Niffin joining us now. Jan, you got my attention with one of your pieces the other day. Why do you think we should not fear the holidays.Well, Brian, this party might end early, too, but so far the punch bowl is still out. You know, I follow the CNBC NRF numbers really closely, and we had a pretty darn good October, almost 5%. down a little bit from September, which was almost 6%.But if we could take 5% right now and go home, we retailers would be thrilled. >> All right. ...

Core Insights - Retail performance shows mixed results, with some retailers thriving while others, like Target, are struggling significantly [2][6][7] Retail Performance - October retail sales increased by nearly 5%, slightly down from almost 6% in September, indicating a generally positive trend [1] - Despite overall growth, not all retailers are benefiting equally; Target reported a negative 2.7% comparable store sales, contrasting with expectations for Walmart to report a 4% increase [2][3] Consumer Behavior - The lowest income consumers are facing challenges, spending only 8% of their income, while the top 20% continue to spend robustly [4] - Wages are rising faster than inflation, unemployment remains low, and inflation is lower than the previous year, contributing to a favorable consumer environment [5] Company-Specific Insights - Target's stock has plummeted from $230 in 2021 to $85, highlighting its struggles in the competitive retail landscape [6] - Walmart, Costco, and Home Depot are currently leading the retail sector, with Walmart capturing a significant share of Target's traditional customer base [7] - Target is undergoing a $5 billion store remodeling project to enhance competitiveness, but the effectiveness of these changes remains uncertain [9]

Target has released its sales projections for the holiday season. Here's what to know. https://t.co/WT3AaBKDGV https://t.co/ST6ieLhnBd ...

Core Insights - Target is leveraging artificial intelligence to enhance its merchandising and marketing strategies, aiming to regain its reputation for affordable and fashionable products [1][2] - The company is utilizing an internal generative AI tool, Target Trend Brain, to predict trends and simulate consumer responses through "synthetic audiences" [2][3] - Target's recent corporate layoffs, totaling 1,800, are intended to streamline workflow rather than reduce costs, as the retailer faces sluggish sales and declining foot traffic [3][4] Financial Performance - Target reported earnings of $1.51 per share on sales of $25.3 billion, reflecting a 1.5% revenue decline year-over-year [8] - Comparable-store sales decreased by 3.8% year-over-year, while digital sales increased by 2.4%, driven by the popularity of same-day delivery services [8] - The company has adjusted its earnings outlook to the lower end of its previous guidance for the fourth quarter, citing poor consumer sentiment and industry volatility [8] Operational Challenges - Target executives identified issues such as disorganized stores, out-of-stock items, and uninspiring merchandise as contributing factors to their current challenges [4][6] - The company is implementing measures to improve store operations, including concentrating delivery fulfillment in locations with lower foot traffic to enhance customer service in busier stores [7] - New technology is expected to help prevent stockouts of popular items and reduce time spent on backroom tasks [7]