What happened at Target? And what now? A veteran trader and analysts weigh in

Back in 2014, Brian Cornell was focused on the future.

Target (TGT) had just named the 30-year retailing veteran as the chain's next chairman and chief executive.

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He'd most recently been CEO at PepsiCo's (PEP) Americas Foods, where he oversaw the drinks-and-snacks giant's global food business, the largest of its four divisions.

Before joining PepsiCo in 2012, Cornell was president and CEO of Sam’s Club, Walmart’s (WMT) membership warehouse club.

"I am committed to empowering this talented team to realize its full potential, lead change and strengthen the love guests have for this brand," Cornell said then in a statement.

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“As we create the Target of tomorrow. I will focus on our current business performance in both the U.S. and Canada and on how we accelerate our omnichannel transformation.”

Now, just over a decade later, after the chain made a number of missteps, Cornell was telling analysts that he would be stepping down as CEO and that Chief Operating Officer Michael Fiddelke would take the helm on Feb. 1, 2026. Cornell will remain executive chairman.Brian Cornell is stepping down as CEO of Target. Photo: Sarah Blesener/Bloomberg via Getty ImagesBloomberg/Getty Images

Target's Cornell: We are far from satisfied

Although the Minneapolis chain beat Wall Street’s fiscal-second-quarter expectations and affirmed its outlook, its stock was sliding. The shares are off nearly 29% this year, down 33% from this time in 2024, and 37% from five years ago.

In addition, Target has seen a steady decline in same-store visits for roughly the past 18 months.

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"To be clear, while we were happy to see improvement in Q2, we are far from satisfied with where our business is performing today," Cornell said during the Q2 earnings call.

"We need to do better, and our entire team is focused on consistent execution building further momentum and getting back to profitable long term."

Fiddelke, 49, who joined Target in 2003 as an intern and rose through the ranks to chief financial officer and then COO, echoed Cornell's sentiment, saying, "we must improve."

"I know we're not realizing our full potential right now," he said, "and so I'm stepping into the role with a clear and urgent commitment to build new momentum in the business and get back to profitable growth."Target's Michael Fiddelke poses for a portrait at headquarters in Minneapolis on June 24, 2025. Fiddelke, formely chief operating officer of Target, was announced as CEO of the chain on June 20, 2025. He's slated to take the CEO's post Feb. 1, 2026.Elizabeth Flores/Minnesota Star Tribune via Getty Images)

Fiddelke said that he, the board and the rest of the company's leadership are taking "a clear-eyed approach to the work in front of us to understand where we need to lean in and where we need to accelerate change."

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TheStreet Pro's Stephen Guilfoyle isn't happy with Target's performance, either. He called the quarter's earnings "sloppy," a condition that he said became standard operating procedure during Cornell's reign.

"I have often written over the past few quarters that I could not believe that the board hung onto this guy, even as the brand took a regular beating despite the fact that Amazon, (AMZN) Costco (COST) and Walmart (WMT) all found ways to evolve and even thrive in a tough retail environment," he wrote in his Aug. 20 column.

Veteran trader unhappy with TGT's insider succession

Guilfoyle, whose career dates back to the floor of the New York Stock Exchange in the 1980s, said he thought Target shares would soar after Cornell said he was stepping down.

Instead, the shares fell, and were down 7% at last check to around $98.

"Cornell, whose tenure has been catastrophic for Target, is not exactly leaving," he said. "He is hanging around as CEO through the holiday season (are you kidding me?) to be replaced on Feb. 1" by Fiddelke.

"No wonder the stock is down," Guilfoyle continued. "Not only is the firm promoting from within this beleaguered C-suite, when outside leadership was so desperately needed, but Cornell will stick around as executive chair."

Guilfoyle ticked off Target’s problems:

Margins are under pressure. Cash flows are under pressure. Target has been returning more capital to shareholders than it has been creating in free cash. The balance sheet is below average.

Target, he said, “has been significantly outperformed and, in my humble opinion, outfinessed by its nearest competitors.”

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"To keep the underperforming chief executive around in an executive capacity is foolish," Guilfoyle said. "To promote someone from his C-suite who certainly had an influence in how poorly this firm has traversed the past few years is just confounding."

Fiddelke may turn out to be great, he added,. but "after working for Cornell, he'll have to pretend he is from Missouri and show us."

"What can you say?" Guilfoyle said. "I have told readers in the past that I would not buy shares of Target with their money even if I hated their guts."

If he were to short the shares — which he isn't — his target price would be in the area of $85 to $86.

"This, for me, is not a ‘buy the dip’ opportunity," the veteran trader said. "The firm is still headed into the holidays with the same batch of misfits running the show."

What does Target need to do now?

As Wall Street analysts see matters, Fiddelke has a massive lift ahead.

Roth Capital affirmed a neutral rating and a $90 price target on Target shares. The investment firm said the new CEO must contend with falling revenue and narrowing profit margins.

The firm, calling Target’s position "precarious," said the chain faces an unfavorable macroeconomic backdrop, since many consumers are tightening their belts and cutting spending on discretionary items.

Target has underinvested in technology, and must manage the cost inflation that is appearing due to the Trump administration's tariffs, Roth said.

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At Bank of America Securities, analyst Robert F. Ohmes reiterated an underperform rating with a $93 price target, indicating a 7% drop from current levels.

The analyst wants to see faster growth in digital sales and more digital advertising and advertising in third-party marketplace.

Target faces "elevated tariff, pricing and merchandising headwinds" plus "increasing competition from Walmart and Amazon," he said.

Online "traffic growth is key to scaling digital advertising and third-party-marketplace fees," which Target needs to widen its gross margins "and support investments in automation, technology, and AI," Ohmes said. He added that Target's exposure to tariffs is higher than Walmart's.

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This story was originally reported by TheStreet on Aug 20, 2025, where it first appeared in the Investing News, Analysis, and Tips section. Add TheStreet as a Preferred Source by clicking here.