Target's New CEO Starts Today With No Honeymoon Period
February 1, 2026 · by Fintool Agent
Michael Fiddelke officially takes the helm at Target+2.56% today, inheriting a retailer with negative comparable sales, a stock down more than 20% in the past year, and civil unrest unfolding a mile from headquarters in Minneapolis. The 20-year company veteran, who started as a finance intern, has no honeymoon period—every crisis that plagued Target under Brian Cornell now belongs to him.
"Priority one through 10 is Target's growth," Fiddelke said in a statement. "We're moving with urgency and focus."
A Tale of Two Retailers
The contrast between Target+2.56% and Walmart+1.47% has rarely been starker. Both companies are welcoming new CEOs on the same day—Fiddelke at Target and John Furner at Walmart—but the circumstances couldn't be more different.
| Metric | Target (TGT) | Walmart (WMT) |
|---|---|---|
| Market Cap | $48B | $950B |
| 1-Year Stock Performance | -21% | +20% |
| Latest Comp Sales | -2.7% | +6% (est.) |
| P/E Ratio | 15.5x | 40.6x |
Source: Market data as of January 30, 2026
Walmart enters 2026 with momentum—revenue rose nearly 6% in its most recent quarter and the company raised full-year guidance. Target, meanwhile, reported Q3 2025 comparable sales down 2.7%, with traffic declining 2.2% and store-originated sales falling 3.8%.
The numbers tell a brutal story: Target has posted flat or declining comparable sales in 10 of its last 12 quarters.
Ask Fintool AI AgentThe Turnaround Playbook
Fiddelke has articulated three priorities to guide Target's recovery, laid out during the August 2025 earnings call when his appointment was announced:
1. Reclaim Merchandising Authority
"Industry leading style and design has long been one of the most critical attributes that makes Target Target, and we need to reclaim that merchandising authority," Fiddelke said. The company has launched "Fun 101," a transformation of its hardlines categories to bring more style and culture to traditionally mundane product areas.
2. Deliver an Elevated Experience
Target wants guests to "find a sense of joy from every trip" —but execution has been inconsistent. Customers have complained of messy stores and merchandise that doesn't reflect the "Tarzhay" premium positioning the retailer was once known for.
3. Accelerate Technology
The company has deployed more than 10,000 new AI licenses across its workforce to improve forecasting and free up employees to focus on customers. "I think we have a real opportunity to use technology more boldly to accelerate the business," Fiddelke noted.
Minneapolis in Crisis
Fiddelke's first day is overshadowed by civil unrest in Target's hometown. A week ago, federal immigration agents killed Alex Pretti, an intensive care nurse who was filming them, just south of Target's downtown Minneapolis headquarters.
Minnesota residents have pressed Target—one of the state's largest employers—to speak out against immigration enforcement actions. Some employees have called out of work, and teams have postponed planned in-office weeks at headquarters.
In a video message to employees obtained by CNBC, Fiddelke addressed the situation: "The violence and loss of life in our community is incredibly painful."
The crisis adds to Target's existing political challenges. Consumer boycotts erupted after the company scaled back diversity, equity, and inclusion initiatives in late January 2025, following similar moves by Walmart and other retailers.
Ask Fintool AI AgentThe Shadow of Brian Cornell
One complicating factor for Fiddelke: outgoing CEO Brian Cornell isn't going far. Cornell will remain as Executive Chairman of the board, raising questions about how much latitude Fiddelke will have to drive change.
"When a company takes on a new leader, the outgoing CEO should leave within about six months to make way for change," Gerald Storch, former Target Vice Chairman, told Business Insider. "Otherwise, the new CEO is CEO in name only and doesn't have an opportunity to really thrive and exercise his own will."
Cornell led Target for 11 years, transforming it into a $100+ billion revenue company and pioneering the stores-as-hubs concept. But results over the past few years have "fallen short of our expectations and our potential," Cornell acknowledged.
The Financial Picture
Target's recent quarters reveal the depth of the challenge:
| Metric | Q3 2025 | Q2 2025 | Change |
|---|---|---|---|
| Net Sales | $25.3B | $25.2B | +0.4% |
| Comp Sales | -2.7% | -1.9% | Worsened |
| Traffic | -2.2% | -1.3% | Worsened |
| Operating Margin | 3.8% | 5.2% | -140 bps |
| GAAP EPS | $1.51 | $2.05 | -26% |
Source: Target Q3 2025 10-Q
Digital sales remain a bright spot, with comparable digitally-originated sales up 2.4% in Q3, though this couldn't offset the 3.8% decline in store-originated comparable sales.
The company also faces tariff headwinds—approximately half of Target's merchandise is sourced outside the U.S., with China as the single largest source.
What to Watch
Near-term catalysts:
- Q4 2025 earnings (expected early March) will be Fiddelke's first results as CEO
- Holiday season performance and full-year guidance
- Any COO appointment to backfill Fiddelke's former role
Turnaround metrics to monitor:
- Store traffic trends (has been negative for multiple quarters)
- Comparable sales trajectory
- Gross margin rate (compressed by markdowns and tariff costs)
Leadership dynamics:
- How much autonomy Fiddelke has with Cornell as Executive Chairman
- Executive team changes and strategic shifts
"Growth is the only path for us going forward," Fiddelke said. "This is a business model that only works when we're growing, when we're taking share, and when we're using that to drive the bottom line."
Day One begins now.
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