Goal Corp. on Aug. 20 named Chief Working Officer Michael Fiddelke as its subsequent chief govt officer, succeeding longtime CEO Brian Cornell, because the retailer reported quarterly earnings that topped Wall Avenue estimates regardless of a gross sales decline.
Fiddelke, a 20-year firm veteran who beforehand served as Goal’s chief monetary officer, will take over as CEO and be part of the board on Feb. 1, 2026, the corporate mentioned in an Aug. 20 launch. Cornell, who has led the Minneapolis-based retailer since 2014, will transfer into the function of govt chair.
“Michael is the fitting chief to return Goal to development, refocus and speed up the corporate’s technique, and reestablish Goal’s place as a frontrunner within the extremely dynamic and fast-moving retail atmosphere,” Christine Leahy, lead impartial director of the board, mentioned in an announcement.
The succession marks the tip of an period for Cornell, who’s extensively credited with steering Goal by means of a serious transformation. Underneath his management, the retailer leaned into its “shops as hubs” mannequin, expanded same-day providers resembling Drive Up, and constructed up a $30 billion portfolio of owned manufacturers. The board famous that in Cornell’s 11 years on the helm, Goal’s revenues grew by $34 billion, turning it right into a $100 billion-plus firm.
Cornell known as it a “privilege” to guide Goal and mentioned Fiddelke’s “outstanding degree of resolve within the face of advanced challenges” and keenness for development could be important in shaping the corporate’s subsequent part. Fiddelke, who has held management roles throughout merchandising, finance, operations, and human sources, mentioned he was entering into the function with “an pressing dedication to drive development and ship higher outcomes.”
The management announcement coincided with the launch of second-quarter monetary outcomes. Web gross sales edged down 0.9 p.c to $25.2 billion, whereas comparable gross sales declined 1.9 p.c. Retailer gross sales dropped 3.2 p.c, though that was partly offset by 4.3 p.c development in digital channels, fueled by demand for same-day providers.
Profitability fell extra sharply. Web revenue dropped to $935 million, or $2.05 per share, from $1.19 billion, or $2.57 per share, in the identical quarter a yr earlier. Working revenue declined practically 20 p.c to $1.3 billion as larger markdowns, cancellation prices, and class combine weighed on margins.
Nonetheless, Goal’s income outcomes surpassed Wall Avenue expectations, providing a measure of resilience within the face of challenges. Analysts had forecast quarterly gross sales of $24.93 billion, in accordance with knowledge compiled by LSEG. The higher-than-expected top-line efficiency mirrored improved retailer visitors in contrast with the primary quarter and broad-based enhancements throughout Goal’s six core merchandising classes. Cornell mentioned the numbers confirmed “encouraging indicators of restoration,” pointing to stronger gross sales momentum in shops and disciplined value administration.
Throughout Cornell’s tenure, Goal additionally navigated important social and political headwinds. The corporate got here underneath hearth in 2023 for promoting LGBT-themed attire and books for youngsters as a part of its annual Delight Month assortment. Conservative commentators urged boycotts, evaluating the backlash to the controversy that engulfed Bud Gentle after it partnered with an influencer who recognized as transgender. At one level, Goal misplaced greater than $10 billion in market worth because the boycott gained traction. The corporate later eliminated a few of the extra controversial gadgets, citing worker security and threats in shops.
Cornell defended Goal’s range, fairness, and inclusion (DEI) efforts, telling Fortune’s “Management Subsequent” podcast in 2023 that DEI insurance policies have been “good enterprise choices” that constructed engagement with prospects and staff. However because the political and social temper shifted, Goal in early 2025 introduced it might wind down a number of high-profile DEI initiatives, together with its racial fairness motion and alter (REACH) program and exterior participation within the Human Rights Marketing campaign’s company equality index. Executives mentioned the choice mirrored a have to “keep consistent with the evolving exterior panorama.”
In its second-quarter earnings report, Goal additionally reaffirmed its full-year monetary outlook. The corporate continues to count on GAAP earnings of $8 to $10 per share, or $7 to $9 per share on an adjusted foundation, and forecasts a low-single-digit share decline in total gross sales for fiscal 2025.
If you happen to discovered this text attention-grabbing, please contemplate supporting conventional journalism
Our first version was revealed 25 years in the past from a basement in Atlanta. Immediately, The Epoch Instances brings fact-based, award-winning journalism to tens of millions of People.
Our journalists have been threatened, arrested, and assaulted, however our dedication to impartial journalism has by no means wavered. This yr marks our twenty fifth yr of impartial reporting, free from company and political affect.
That’s why you’re invited to a limited-time introductory supply — simply $1 per week — so you may be part of tens of millions already celebrating impartial information.
