Looking for a way to profit of the Street's (and my own) disappointment
August 20, 2025
With shares down over 60% over the last 4 years, earnings declining and a CEO set to retire Target had a chance to make dramatic changes. Instead, the discount retailer made the most obvious, timid, decision possible, announcing 20-year company veteran Michael Fiddelke will become CEO when Brian Cornell retires next February.
Fiddelke is currently Target's Chief Operating Officer. Fiddelke made his public debut, of sorts, when he was installed as head of the newly created Enterprise Acceleration Office last May. The very existence of an Enterprise Acceleration Office was weird. Target's sales peaked in 2021. The company is obviously, demonstrably, going in the wrong direction on earnings, revenues, comps and "vibe".
Target needs an agent of change. A turnaround plan. Fiddelke's appointment was a vow to Stay the Course with what's not working now and try to go even faster. Shares are down 5-10% early not because Fiddelke himself is so offensive but because hiring from within suggests Target doesn't know the company is lost. Target needed a kick in the ass from the board of directors. It got a glass of warm milk, instead.
Unacceptable.
Final Grade: D
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