Target has chosen a veteran company executive to serve as its new CEO.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.Michael Fiddelke, Target’s chief operating officer and former finance chief, will take the chief ...

Target (TGT) Q2 2026 Earnings Call August 20, 2025 08:00 AM ET Company ParticipantsJohn Hulbert - Director - Investor CommunicationsBrian Cornell - Chair & CEOMichael Fiddelke - EVP, Incoming CEO & COORick Gomez - EVP & CCOJim Lee - EVP & CFOKate McShane - Managing DirectorCorey Tarlowe - SVP - Equity ResearchJoseph Feldman - Senior MD & Assistant Director - ResearchSimeon Gutman - Managing DirectorEdward Kelly - MD - Equity ResearchConference Call ParticipantsMichael Lasser - Equity Research Analyst - Hard ...

Financial Data and Key Metrics Changes - For Q2 2025, comparable sales decreased by 1.9%, showing a nearly two percentage point improvement from Q1 [32] - Net sales were down 0.9% year-over-year, which was nearly two percentage points better than Q1 performance [40] - GAAP and adjusted EPS for Q2 were $2.05, down from $2.57 a year ago, primarily due to inventory adjustment and tariff-related costs [44] Business Line Data and Key Metrics Changes - Digital channel comparable sales grew by 4.3%, with significant strength in same-day delivery, which increased by over 25% [33] - The Fun 101 initiative led to over 5% growth in hardlines, marking the strongest quarterly comp in this category since 2021 [34] - Trading card sales increased nearly 70% year-to-date, positioning the company as a top market share player in that category [34] Market Data and Key Metrics Changes - The company gained or held market share in 14 out of 35 subcategories tracked so far this year [41] - The food and beverage categories saw slight year-over-year growth, driven by new floral offerings and trending flavors [35] Company Strategy and Development Direction - The new CEO, Michael Fidelke, emphasized the need to reestablish merchandising authority and improve guest experience [18][19] - The company plans to leverage technology to enhance speed and efficiency across operations [23] - A focus on style and design will be central to the company's strategy moving forward [67] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that results over the past few years have fallen short of expectations and emphasized the urgency to improve performance [7][12] - The leadership team is committed to returning the company to growth and improving the shopping experience for guests [53][55] - The company expects to navigate the current tariff environment and is optimistic about ending the year in a healthy position [11] Other Important Information - The company announced a succession plan with Michael Fidelke becoming the next CEO at the start of the 2026 fiscal year [5][6] - The company is investing in technology and process improvements to streamline operations and enhance the guest experience [49] Q&A Session Summary Question: What price increases were taken during the second quarter due to tariffs? - Management indicated that they are working hard to mitigate tariff impacts and will take price increases as a last resort, focusing on maintaining competitive pricing [58][59] Question: How does the succession plan bring about change to improve business trajectory? - The new CEO highlighted the importance of leveraging his extensive experience with the company to focus on style and design as key growth drivers [66][67] Question: What investments will be necessary to close the performance gap with peers? - The company plans to continue investing in high-return projects, including new store openings and technology enhancements [72][75]

Core Viewpoint - Target's Q2 performance exceeded expectations, but the stock price fell sharply due to disappointment over the internal CEO succession plan, with Michael Fiddelke set to take over in February 2024 [1][2]. Financial Performance - Target reported Q2 revenue of $25.2 billion, a year-over-year decline of 0.9%, which was better than the market expectation of $24.9 billion [2]. - Net profit decreased to $935 million, with earnings per share at $2.05, slightly above the expected $2.03 but down from $1.19 billion and $2.57 per share in the same quarter last year [2]. - The company reaffirmed its full-year guidance, expecting low single-digit percentage declines in sales and adjusted earnings per share between $7 and $9 [3]. Leadership Transition - Michael Fiddelke, currently COO, will become CEO in February 2024, with a focus on revitalizing sales and regaining market share lost to competitors like Walmart and Amazon [1][4]. - Fiddelke's previous roles included CFO and COO, giving him extensive experience across various business areas [4]. Market Challenges - Despite improvements in sales across six product categories, consumer spending remains cautious, impacting overall performance [3]. - The company faces challenges from new U.S. tariff policies, which have a more significant impact on Target compared to competitors like Walmart [5]. - Target is expanding its supplier base to mitigate tariff impacts, with price increases being a last resort [6]. Customer Trends - Store traffic has been declining since late January, with a 1.3% drop in customer transactions and a 0.6% decrease in average transaction value compared to the previous year [6]. - Online same-store sales showed a positive growth of 4.3% year-over-year, indicating a shift in consumer purchasing behavior [6]. Non-Retail Growth - Target's non-retail revenue grew by 14.2% year-over-year, driven by advertising, membership programs, and third-party transactions [7]. - Fiddelke noted that retail sales improved from Q1 to Q2, although still in negative growth, with all major product categories showing improvement [7].

Our top corporate story today, Target, the retailer rolling out CEO succession plans along with its quarterly results. Right now, those stock that stock is down by about 10%. Courtney Reagan's here and she's got more on this story.Clerk, good morning. Good morning. It's good to see you all.So, Target CEO succession getting more attention than its results this morning. After more than 11 years of CEO, Brian Cornell will transition to executive chairman at the end of the fiscal year. So, February 1st, current ...

Target's new CEO gets tasked with turnaround 2.0, @AndreaFelsted writes (via @opinion) https://t.co/shhseRzGtG ...

Target CEO Brian Cornell Will Step Down As Sales Continue To Fallhttps://t.co/TRwtiS36PY https://t.co/AwSZDyutNa ...

targets. Brian Cornell will be leaving the CEO position after leading the retail giant for the last 11 years. The company's current COO is going to be taking on that top job.That stock down by about 9.6% this morning. The company also announcing earnings this morning that were a little better than had been expected. But joining us right now to talk about all of it is former PVH chairman and CEO Manny Charo.He's now LNK partner and BCI Brands chairman. And Manny, you've been in this business for a long time. ...

Target Q2 2025 Results Net Sales -0.9% Comparable Sales -1.9% Stores -3.2% Comparable Sales +4.3% Digital Comparable Sales Progress in stores Stores comp sales were up more than 2 percentage points from Q1. growth in same-day delivery. >25% Same-day services grew 3% and ship-to-guest grew >7%. GAAP and Adjusted EPS* $2.05 We're encouraged by our progress in Q2, but we won't be satisfied until Target returns to growth. Topline improvements Traffic and sales trends improved meaningfully from Q1 2025. We saw i ...

Joining us right now to talk a little bit more about this is Stacy Whidlet. She is the president of SW Retail Advisors. Stacy, what's your reaction to this news.>> Good morning, Becky. I'll be honest. Um, you know, I think I'm a little surprised that there wasn't uh somebody from the outside coming in to uh take a leadership role.Um, I think that's part of the stock reaction here. And I think, you know, if if you look at Joe, you're talking about the reaction to DI, it's a narrative. A lot of companies have ...