Topline
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.
Target CEO Brian Cornell will step down from the role in February.
Getty ImagesKey Facts
In a press release, the company said Cornell will step down as CEO and “transition to the role of executive chair of the Board of Directors” starting February 1, 2026.
The retailer said its Board of Directors unanimously picked COO Michael Fiddelke, a 20-year veteran at Target, as Cornell’s successor.
The announcement was made alongside Target’s Q2 2025 earnings release, where the company reported a 0.9% drop in sales compared to the same three-month period last year.
After the announcement and earnings report, the company’s shares slid more than 10.5% to $94.2 in premarket trading Wednesday.
What Did The Company Say In Its Earnings Release?
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.
Big Number
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.
Key Background
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.
Further Reading
Target names insider Fiddelke as CEO to guide turnaround (Reuters)