Target announced early Wednesday that Brian Cornell is stepping down as the company's CEO as the company released financial data showing falling sales.
Cornell will be replaced by Michael Fiddelke, Target's current chief operating officer. Cornell will stay with Target as executive chair of its Board of Directors. The change in leadership will be effective as of Feb. 1, 2026.
The change in leadership comes as the company announced another quarter of lagging sales. The company said its second-quarter operating income of $1.3 billion was 19.4% lower than last year.
After Target announced its updated financial statement and change in leadership, the company's stock fell by over 9% in premarket trading early Wednesday morning.
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Christine Leahy, lead independent director of Target's Board of Directors, gave credit to Cornell for leading a period of growth of Target that suddenly ended in the last year.
"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, Target faced backlash for pulling some of its Pride Month items. The company said it was in response to violent threats made against company employees.
Earlier this year, the company announced it was eliminating some of its diversity initiatives, causing additional calls for a boycott.
Leahy suggested that sales could start to turn around as the company enters what should be considered a busy period for retail.
"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," she said.
