Target on Wednesday named a new chief executive, Michael Fiddelke, the company’s chief operating officer and a 20-year company veteran, who said that improving the retail giant’s sputtering finances was “urgent” as he prepared to step into the top job.
The announcement came as the company reported second-quarter results, which were better than analysts expected, and an improvement from the previous quarter, but still showed a drop in foot traffic and the amount shoppers spent per visit. Same-store sales fell 1.9 percent last quarter and profit declined around 20 percent, in part because of markdowns to move merchandise, the company said.
Target reiterated its forecast for a “low-single digit” decline in sales this year. Its stock sank 9 percent in premarket trading.
Mr. Fiddelke will become Target’s chief executive in February, and the current leader, Brian Cornell, will shift to executive chairman.
“I step into the role with an urgent commitment to drive growth and deliver better results,” Mr. Fiddelke said in a statement, adding that he would push the company to “embrace change with pace and purpose.”
The forecast reflects border struggles across the retail sector as companies like Target navigate the ripple effects of higher tariffs and dampened consumer sentiment.
In recent months, higher import costs tied to the trade conflict between the United States and China have increasingly been passed along to shoppers. Some retailers initially resisted raising prices, but many companies have said they plan to or have already passed the higher costs onto consumers. Home Depot, which reported quarterly earnings this week, expects modest price increases in certain categories after previously stating it would not raise prices as a result of tariffs.
Target had previously outlined steps to minimize the impact of tariffs, which included negotiating with vendors and suppliers to keep prices low, expanding its sources of production and adjusting inventory and order schedules.
Fearing that tariffs could raise prices, early in the year many companies added to inventories and shoppers raced to buy foreign-made products, leading to a burst of activity in the first quarter and a pullback in the second.
In addition to tariffs and weakening consumer confidence, Target is facing growing criticism over its retreat from diversity policies. In January, the company rolled back its inclusive initiatives, despite having long been regarded as a retailer that promoted and sold products from many minority communities. Since then, multiple groups have called for shoppers to boycott.
Target and Ulta Beauty announced last week that they would end their partnership in August 2026, which introduced Ulta-branded beauty shops to nearly a third of Target’s stores and also sold Ulta’s products on Target’s website. Target had previously highlighted the partnership as a key traffic driver and a boost to its beauty category.
Kailyn Rhone is a Times business reporter and the 2025 David Carr fellow.
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