Group 1 - Target has announced the replacement of CEO Brian Cornell with Michael Fiddelke, who has been with the company since 2003, effective February 1 next year [1][2] - Cornell has been CEO since 2014 and will transition to the role of executive chair of the board of directors [2][4] - The leadership change comes as Target faces challenges post-pandemic, with a decline in sales and store traffic, particularly after rolling back DEI initiatives [2][4] Group 2 - Target reported second-quarter earnings with sales of $25.2 billion, a nearly 1% decrease year-on-year, but exceeding Wall Street expectations of $24.93 billion [4] - The company maintains a forecast of a low-single-digit decline in sales for 2025 [9] - Analyst Neil Saunders expressed mixed feelings about Fiddelke's appointment, noting it may not address the entrenched groupthink issues within the company [10]

Market Share & Competition - Target is losing market share in more than half of its categories [2] - Walmart's comps have been up mid-single digits while Target's have been down 2-3%, creating a 7-8 percentage point spread [4] - Walmart is gaining market share, particularly from higher-income consumers, who are typically Target's customers [7] - Amazon is also expected to increase its market share as it expands its fresh food and same-day delivery services [7] - Target is not picking up the market share that Kohl's is losing [8][9] Operational Challenges - Target's stores are reportedly in disarray with inventory and labor shortages due to fulfilling online orders from stores [3][9] - Traffic is down at Target stores, potentially due to execution issues and product unavailability [5][6] - Labor shortages are impacting store operations as employees are reallocated to fulfill online orders [3][9] Financial Performance & Strategy - Same-day delivery has been a positive factor, with growth exceeding 24%, partially offsetting the decline in overall comps [10] - Target is using promotions to move merchandise, unlike many retailers who are maintaining full prices [11][12] - Target faces a difficult situation with tariffs, needing to decide whether to raise prices or sacrifice margins [12][13] Leadership & Future Outlook - There is surprise that an external candidate was not brought in for a leadership role [1][15] - Concerns exist about Target's ability to fix the issues that have been apparent for the past two years [3][15]

Company Leadership Transition - Target CEO Brian Cornell will step down next year after over a decade, as the company undertakes a turnaround effort to reignite growth and reverse declining sales [1] - Michael Fiddelke, the current COO, has been elected to succeed Cornell and will join the Board of Directors on February 1 [1][13] Executive Background - Cornell, 66, is concluding a three-year commitment made in 2022, during which Target's board removed the mandatory retirement age of 65 to allow him to lead during a critical period [2] - Fiddelke, 49, has been with Target for 20 years and has held various leadership roles across merchandising, finance, operations, and human resources [2] Business Performance - In the latest fiscal quarter, Target reported $25.2 billion in sales, a decrease of just under 1% year-over-year [5][16] - Sales at stores open at least a year fell nearly 2%, with in-store sales dropping more than 3%, while online sales grew a little over 4% [10] Profit and Sales Forecast - The company's profit for the quarter was $1.3 billion, down about 19% from the previous year [10] - Target expects a low-single digit decline in sales for fiscal 2025, revised down from a previous forecast of net sales growth of about 1% [15] Strategic Initiatives - To achieve long-term profitable growth, Target announced a new multi-year growth initiative called the Enterprise Acceleration Office, aimed at enhancing speed, adaptability, innovation, and resilience [14]

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 ...