Target CEO Brian Cornell will step down in February, the retailer announced Wednesday, as its latest earnings show a drop in sales for the third consecutive quarter amid backlash over its reversal of diversity, equity and inclusion policies.
The company reported net sales of $25.2 billion for the three month period ending on August 2, 2025. Despite reporting a drop compared to Q2 2024, the company managed to beat Wall Street’s earnings and sales expectations and said it outlook for the year remains unchanged. The company claimed its “expense management and efficiency gains,” helped offset “continued tariff-related and other cost pressures.” The company also reaffirmed its earlier stance that price increases due to tariffs would only be undertaken as a last resort.
23.20%. That is how much Target’s shares have fallen since the start of the year, excluding Wednesday’s premarket slide. In comparison, shares of rivals Walmart and Costco are up 12.54% and 7.81% since the start of 2025.
Earlier this year, Target announced it was rolling back its diversity, equity and inclusion (DEI) initiatives, joining several other companies which have scaled back such efforts amid pressure from the Trump administration and several conservative groups. However, this rollback triggered a backlash and a boycott against Target and criticism from civil rights activists. The boycott appears to have had an impact, as RetailBrew reported that foot traffic at Target was down 3.1% in Q2 2025. While announcing the previous quarter’s earnings report in May, Cornell acknowledged the backlash to company’s DEI rollback was one of the factors behind a revenue decline.
On Wednesday, the retail chain announced in a press release that its board of directors unanimously elected COO Michael Fiddelk to be the next chief executive officer and become a member of its Board of Directors in early 2026, as reported by The Associated Press. Meanwhile, current CEO Cornwell will shift to the role of executive chair of the board of directors.
Fiddelk, who has served for 20 years in the company, was appointed after several years of the board vetting internal and external candidates for the role. As part of his current role, he recently launched and now leads Target’s Enterprise Acceleration Office, focused on transforming the company’s operations.
Is Michael Fiddelke the Incoming Target CEO?
Yes, Michael Fiddelke is the incoming Target CEO. The company’s board of directors unanimously appointed him to the role, with a start date of February 1, 2026. He will succeed Brian Cornell, who will move into the role of executive chair of the board. Fiddelke’s appointment comes at a crucial time as the company faces market challenges. In an earnings call, he outlined a three-part plan to drive growth, which includes reclaiming the company’s merchandising authority, enhancing the in-store experience, and investing in technology and AI to improve operational efficiency.
Who is Michael Fiddelke?
Michael Fiddelke, 49, is an Iowa native who has worked at Target for more than 20 years. His journey is well highlighted on his LinkedIn profile, where he notes that he first joined the retailer as a finance intern in 2003.
Over the years, he has held leadership roles across finance, operations, human resources, and merchandising.
He served as Chief Financial Officer (2019–2024), where he led initiatives to modernize stores, expand the supply chain, and strengthen digital capabilities.
In January 2024, he was named Executive Vice President and Chief Operating Officer, overseeing nearly 2,000 stores, Target’s global supply chain, fulfillment services including same-day delivery with Shipt, as well as enterprise operations and properties.
Earlier, Fiddelke held senior positions such as SVP of Operations, SVP of Merchandising Capabilities, and Vice President of Pay and Benefits, among others. His broad experience across business functions may be why the board entrusted him with the top role.
He worked for three years at Deloitte Consulting LLP before joining Target. He holds a degree in industrial engineering from the University of Iowa and an MBA in finance from the Kellogg School of Management.
Target CEO Brian Cornell steps down after 10 years as retailer fights to reverse sliding sales https://t.co/y94G7TGxZT pic.twitter.com/WzV87mcIdl
— New York Post (@nypost) August 20, 2025
Why did Target choose him?
Target’s Board of Directors said Fiddelke’s appointment is the result of a deliberate and extensive succession process that evaluated both internal and external candidates. Christine Leahy, the Board’s lead independent director, said Fiddelke stood out as the right leader to guide Target through its next phase of growth.
“Michael’s tenure gives him unmatched enterprise insight and the trust of our teams,” Leahy noted, adding that what distinguishes him is his ability to pair that deep experience with a “fresh eyes” mindset.
“He challenges the status quo and evolves how the business operates, differentiates, and delivers long-term value.”
The Board said that Fiddelke’s leadership qualities, his resolve in navigating complex challenges, passion for growth, and ability to inspire position him to accelerate strategy and reestablish Target’s leadership in a fast-changing retail environment.
The appointment of Michael Fiddelke as the incoming Target CEO marks a significant moment in the company’s history. His remarkable journey from a finance intern to the top leadership position underscores a belief in internal talent and a deep understanding of the company’s culture and operations. As he prepares to succeed Brian Cornell, Fiddelke faces the challenge of reigniting growth and re-establishing the company’s competitive edge. His unique blend of institutional knowledge and a fresh perspective on innovation and efficiency will be key to guiding Target into its next chapter.
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