Target Replaces CEO Amid Ongoing Sales Decline

A Target store is seen in Hialeah, Fla.

Target announced early Wednesday that Brian Cornell is stepping down as the company's CEO, effective Feb. 1, 2026, amid a decline in sales. Cornell will be replaced by Michael Fiddelke, Target's current chief operating officer, who will take over as CEO. Cornell will remain with Target as executive chair of its Board of Directors.

The change in leadership comes as the company released financial data showing a 19.4% decline in second-quarter operating income to $1.3 billion compared to last year.

After the announcement, the company's stock fell by over 9% in premarket trading.

Christine Leahy, lead independent director of Target's Board of Directors, gave credit to Cornell for leading a period of growth at the company. "I want to express gratitude for Brian's vision, leadership and dedication to Target. Under Brian, Target has become a $100+ billion company, with revenues increasing by $34 billion in 11 years," she said. "Target has been transformed into a true omnichannel retailer as Brian and the team pioneered the stores-as-hubs concept, developed industry-leading same-day services like Drive Up, grew digital performance and built private labels into desirable brands of their own."

Target has faced multiple boycotts in recent years over political issues. In 2023, the company faced backlash for pulling some of its Pride Month items. Earlier this year, it announced it was eliminating some of its diversity initiatives.

"As we enter the critical back-to-school and holiday seasons, our team remains focused on consistent execution and building momentum as we look ahead to the new year," said Leahy.