Target Pushes Out Chief Commercial Officer as New CEO Makes First Bold Move
February 10, 2026 · by Fintool Agent
Target+1.22% is wasting no time cleaning house. Just 10 days into his tenure, new CEO Michael Fiddelke announced a sweeping leadership restructuring that pushes out Chief Commercial Officer Rick Gomez and eliminates his role entirely—a clear signal that the struggling retailer is moving aggressively to fix its merchandising problems under activist investor pressure.
The changes, effective February 15, come as Target confirmed it expects Q4 2025 results to hit prior guidance. But the real story is what this shakeup reveals: a new CEO who isn't waiting for a honeymoon period and an activist investor who may not give him one.
The Departures: What the 8-K Reveals
The SEC filing tells the real story. While Target's press release frames Rick Gomez's departure diplomatically, the 8-K discloses he will leave "under circumstances that will entitle him to severance under Target's Income Continuation Plan on account of his involuntary termination without cause."
Translation: Gomez was pushed out.
Gomez, a 23-year Target veteran who most recently served as Executive Vice President and Chief Commercial Officer, will transition to an advisor role through April 17, 2026. He'll continue receiving his current base salary and target bonus opportunity during the transition, plus partial vesting of long-term incentives.
Also departing is Jill Sando, Chief Merchandising Officer for apparel, accessories, home, and the "Fun101" initiative, who is retiring after 29 years with the company.
Ask Fintool AI AgentThe Appointments: Consolidating Merchandising Authority
The appointments reveal Fiddelke's strategic priority: consolidating merchandising decision-making.
Lisa Roath is promoted to Chief Operating Officer at an annual base salary of $775,000. Roath, 48, has been with Target since 2006 and brings deep merchandising expertise, having led food, essentials, and beauty categories. Her new role will focus on "scaling Target's style and design focus across the full operation."
Cara Sylvester becomes the singular Chief Merchandising Officer, moving from her role as Chief Guest Experience Officer. She will be responsible for "strengthening and expanding Target's authority in style and design through its merchandising capabilities, product development, assortment design and partner collaborations."
The elimination of the Chief Commercial Officer role and creation of a singular CMO position signals a major structural change. Previously, merchandising authority was fragmented across multiple executives. Now it rolls up to one person.
| Executive | New Role | Previous Role | Key Responsibility |
|---|---|---|---|
| Lisa Roath | Chief Operating Officer | CMO Food, Essentials & Beauty | Operations, supply chain, store execution |
| Cara Sylvester | Chief Merchandising Officer | Chief Guest Experience Officer | Product, assortment, design partnerships |
| Rick Gomez | Departing | Chief Commercial Officer | N/A |
| Jill Sando | Retiring | CMO Apparel, Accessories, Home | N/A |
Target is also conducting an external search for a Chief Guest Experience and Marketing Officer—notably looking outside the company for fresh perspective.
Why Now: The Activist in the Room
These changes don't happen in a vacuum. In late December 2025, activist hedge fund Toms Capital Investment Management disclosed a significant stake in Target, sending shares up nearly 7% on the news.
Toms Capital has a track record that should make any board pay attention:
- Built a position in Kellanova shortly before its sale to Mars for nearly $36 billion
- Involved with Kenvue prior to its reported $48.7 billion acquisition by Kimberly-Clark
While a full buyout of Target seems unlikely, the playbook is familiar: push for changes that improve the balance sheet and unlock shareholder value.
Fiddelke has no honeymoon period. The combination of internal transition and external pressure creates what one analyst called a "Goldilocks scenario"—enough pressure to drive change, but new leadership with credibility to execute.
Ask Fintool AI AgentThe Merchandising Problem
Target's challenges are well-documented. The company has posted three straight quarters of declining comparable sales. Market share has bled to Walmart+1.63%, Amazon-1.34%, TJ Maxx, and other competitors.
The core issue: Target's merchandising has lost its edge.
"At our core, we are a style and design-led company. We're merchants at heart who love product and win through offering a unique assortment," Fiddelke said on the August 2025 earnings call. "We must reestablish our merchandising authority in a way that is distinctly Target."
The home category has been a particular weak spot. While pockets like kids' home (Pillow Fort) and premium bedding (Casa Luna) showed growth with new styles and designs, the broader home business "is not where we want it to be."
Management has acknowledged that the "Fun 101" initiative—bringing style and cultural relevance to hardlines—delivered growth exceeding 5% in Q2 2026, the strongest quarterly comp in that category since 2021. Trading cards alone are on track to deliver more than $1 billion in sales this year, up nearly 70% year-to-date.
The challenge now is replicating these green shoots across every category.
Financial Performance: The Turnaround Challenge
Target's financial trajectory shows why change is urgent:
| Metric | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | Q3 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue ($B) | $33.1 | $24.5 | $25.5 | $25.7 | $32.2* | $23.8 | $25.2 | $25.3 |
| Net Income ($B) | $1.38 | $0.94 | $1.19 | $0.85 | $1.10 | $1.04 | $0.94 | $0.69 |
| Diluted EPS | $2.98 | $2.03 | $2.57 | $1.85 | $2.41* | $2.27 | $2.05 | $1.51 |
| EBIT Margin | 5.94% | 5.40% | 6.64% | 4.66% | 4.94% | 6.28% | 5.43% | 4.63% |
| Gross Margin | 26.4% | 28.8% | 30.0% | 28.3% | 26.0% | 28.2% | 29.0% | 28.2% |
*Values retrieved from S&P Global
Revenue has essentially flatlined, while profitability has compressed. Q3 2026 net income of $689 million was down 19% from the prior year. The Q4 2025 holiday quarter will be critical—and Target has confirmed guidance remains on track.
Stock Performance: A Long Road Back
Target shares closed at $115.52 on February 9, 2026, down approximately 16% from the start of 2025 when the stock traded around $137. The 52-week range tells the story of a stock in transition: a low of $83.44 in late 2025 before activist news sparked a rally, versus a 52-week high of $145.08.
Since Fiddelke took over as CEO on February 1, shares have gained 3.8%—a modest vote of confidence, but the real test comes with execution.
Key stock metrics:
- Current price: $115.52
- 52-week range: $83.44 - $145.08
- Market cap: $52.5 billion
- YTD performance (from Jan 2025): -15.8%
- Performance since CEO transition: +3.8%
Ask Fintool AI AgentBeyond the Headlines: The Broader Restructuring
Today's leadership changes are just the latest in a series of moves under the new regime:
- February 9, 2026: Target announced 500 job cuts across supply chain (400) and store district roles (100), with plans to redirect investment into store labor and training
- January 2026: Target appointed former Nike and Hanesbrands executives to the Board of Directors
- May 2025: Established the Enterprise Acceleration Office to drive operational speed
- Late 2025: Cut 1,000 corporate employees, roughly 8% of global workforce
The pattern is clear: consolidate decision-making, reduce overhead, and refocus on core merchandising strengths.
What to Watch
The real test comes March 3, 2026, when Target reports Q4 and full-year results. Key questions:
- Holiday performance: Did the refreshed merchandising in Fun 101 and other categories translate to holiday sales?
- Home category trajectory: Has the Threshold refresh started to gain traction?
- Margin trends: With tariff pressures and competitive pricing, can Target maintain gross margins?
- 2026 guidance: Will the new leadership team provide a bold reset or cautious incremental improvement?
For Gomez, the departure ends a tenure that saw him rise from marketing to overseeing all merchandising—but ultimately couldn't arrest Target's slide. He remains a director on the Wendy's+0.77% board, where he has served since November 2021.
For Fiddelke, the clock is ticking. Activist investors rarely wait patiently, and the structural changes announced today signal he understands the urgency.
"It's the start of a new chapter for Target and we're moving quickly," Fiddelke said.
The retail turnaround playbook is well-worn: simplify the org chart, consolidate authority, cut costs, and refocus on what made the brand special. Target's new leadership is executing from the first pages. Whether they can write a successful ending remains to be seen.