Target stock slumps after retailer names new CEO

STORY: Shares of Target dropped more than 10% Wednesday morning as investors panned the company's choice for its new CEO.

Longtime insider Michael Fiddelke, currently Target's chief operating officer, doesn't start until February of 2026 but he took his first media call as incoming CEO on Wednesday, saying his "number one goal" was to get the retailer back to growth.

Investors, however, see that as a tall order, and sold off the stock despite the company's better-than-expected second-quarter results.

They view Fiddelke, a 20-year Target veteran, as someone who's unlikely to fix the retailer's myriad challenges, including weak sales, merchandise missteps and inventory management problems.

Those issues have battered Target's stock, which is down 23% over the last five years, while shares of Walmart have soared 125% and Costco's have more than tripled.

Analysts said Target could have looked outside for new leadership, with one telling Reuters that Fiddelke's appointment, "does not necessarily remedy the problems of entrenched groupthink and the inward-looking mindset that have plagued Target for years." Related Videos

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Outgoing CEO Brian Cornell said Fiddelke was chosen for his background, experience, and track record at Target, where he has held a variety of leadership roles.

The retailer has taken steps to turn itself around, offering cost-conscious customers new items priced under $20 and several affordable private-label lines.

Its challenges are being complicated by tariffs, which Cornell said will pressure the company's margins, even as it reiterated that price increases would be considered only as a last resort.

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