Target shares tanked 7% after it tapped a longtime insider as its new chief executive – sorely disappointing investors who had hoped the struggling “cheap chic” retailer would lure a retail guru from outside.Michael Fiddelke, the 49-year-old chief operating officer of the “cheap chic” retailer, will take the helm Feb. 1 to replace CEO Brian Cornell who will step into the board’s executive chairman role, the company said Wednesday.Cornell, 66, who led the company for a decade, said: “There is no one better s ...

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 ...

Core Viewpoint - Target has experienced significant long-term growth but is currently facing challenges that have impacted revenue and stock performance, leading to a 28% drop in stock price this year [2][4]. Group 1: Revenue Growth Challenges - Target's annual revenue increased by approximately $30 billion over the past five years, but recent trends show a shift in consumer spending towards essentials, affecting higher-margin discretionary items [1]. - The company's stock has declined over 60% from its peak in 2021, with tariffs on imports posing additional risks to earnings as costs may need to be absorbed or passed on to consumers [4]. - Theft from stores and a reversal of diversity, equity, and inclusion efforts have also contributed to the decline in revenue growth [1][2]. Group 2: Strategic Initiatives - To address growth issues, Target has established an "enterprise acceleration office" aimed at simplifying processes and leveraging technology to enhance growth [6]. - The company is negotiating with vendors and adjusting product assortments to mitigate the impact of tariffs [5]. Group 3: Long-term Growth Potential - Target's $31 billion portfolio of owned brands provides significant control over costs and potential for higher margins, with several brands generating over a billion dollars in sales [8]. - Investment in digital platforms and delivery services has shown positive growth, with digital comparable sales increasing by 4.7% and same-day delivery growing over 35% [9]. - Target's commitment to opening new stores and enhancing its supply chain facilities positions it well for future customer engagement [9]. Group 4: Dividend and Valuation - Target has a strong dividend track record, having increased its dividend for over 50 years, with a current yield of 4.6%, significantly higher than the S&P 500's yield of about 1.2% [10]. - The stock is currently trading at 13 times forward earnings estimates, down from over 18 times, suggesting a potential buying opportunity for investors [11].

Group 1 - Target Corporation has established a multi-year Enterprise Acceleration Office to enhance speed and agility across the organization, aiming for faster progress on its growth roadmap [1][2] - The Enterprise Acceleration Office is a strategic initiative focused on improving operational efficiency, adaptability, innovation, and resilience, allowing the team to better serve guests and accelerate performance [2] - Michael Fiddelke, the chief operating officer, will lead this initiative, leveraging his experience in simplifying complexity and promoting cross-functional collaboration [2] Group 2 - Target announced changes in its executive leadership team to align capabilities that support increased speed and connectivity within the organization [2] - Christina Hennington, the chief strategy and growth officer, will transition to a strategic advisor role until September 7, 2025, while other executives will take on new leadership responsibilities [5] - The company expressed gratitude for Christina's contributions, noting her impact on growing the multicategory commercial business by billions of dollars [3]