Target CEO Brian Cornell to Resign
Brian Cornell, the CEO of Target, is stepping down next year after over a decade in charge, as retailers seek to reignite growth and address declining sales.
The company’s board of directors has unanimously chosen Michael Fidelke, the current Chief Operating Officer, to take over Cornell’s position and join the board starting February 1st.
This change comes as Cornell’s three-year commitment, which he made in 2022, draws to a close. That same year, Target’s board decided to eliminate the mandatory retirement age of 65, allowing him to stay on during a crucial phase for the company.
Fidelke, now 49, has been pivotal in strengthening many aspects of the company over his 20-year tenure, holding various leadership roles in areas like merchandising, finance, operations, and human resources.
Currently, Fidelke manages initiatives aimed at driving significant growth across the business, focusing on investments in stores, supply chains, digital capabilities, and team development. He’s also played a key role in generating over $2 billion in efficiencies.
Christine Leahy, a member of Target’s board, expressed confidence in Fidelke’s ability to refocus and accelerate the company’s strategy, aiming to restore Target’s leadership position in a highly competitive retail landscape.
Leahy noted that Fidelke’s experience has equipped him with unique insights into the business and fostered a strong foundation of trust within his team. She remarked that his fresh perspective challenges the status quo and drives sustainable value.
In the most recent fiscal quarter, Target reported sales of $25.2 billion, which is a decline of less than 1% compared to last year. The company has pointed to a decrease in shopper demand but found some balance in stronger sales of non-merchandise items like services.
Store sales overall dropped over 3%, while online sales saw a modest increase of 4%. The quarterly profit was $1.3 billion, reflecting a significant 19% decline from the previous year.
This year, the company had already indicated potential pressures on profits in the first quarter due to tariff uncertainties.
In May, Target revealed a new multi-year growth initiative called the Enterprise Acceleration Office, which aims to facilitate a more adaptable and resilient operational approach. Changes were also made to the executive team as part of this strategy.
Looking ahead, Target anticipates low single-digit sales declines for fiscal year 2025, with net sales previously estimated to decrease by around 1%. Adjusted earnings per share are projected to be between $7 and $9, falling short of the earlier forecast of $9.80.
