Bitcoin price today: falls to 2-week low below $113k ahead of Fed Jackson Hole
Investing.com -- Target Corporation shares fell over 10% premarket on Wednesday after the retailer its new CEO while also reporting second quarter earnings that narrowly beat estimates but showed continuing sales challenges.
The company reported second-quarter adjusted earnings per share of $2.05, slightly above analyst expectations of $2.04, on revenue of $25.2 billion, which exceeded the consensus estimate of $24.9 billion. Despite beating estimates, Target (NYSE:TGT)’s net sales declined 0.9% compared to the same period last year, though this represented an improvement from the first quarter’s deeper decline.
Meanwhile, Target’s Board of Directors unanimously appointed Michael Fiddelke, the company’s current Chief Operating Officer, to succeed Brian Cornell as CEO effective February 1, 2026. Cornell will transition to the role of executive chair of the Board of Directors.
"It is truly an honor to be named Target’s next chief executive officer," said Fiddelke. "I am eager to refocus our strategy and build on the assets and capabilities that have made Target a beloved destination for incredible products and a one-of-a-kind shopping experience. And to be clear, we have work to do to reach our full potential."
The retailer maintained its full-year guidance, expecting a low-single digit decline in sales and adjusted EPS of $7.00 to $9.00, compared to the analyst consensus of $7.34.
Target’s comparable sales decreased 1.9% in the second quarter, with store sales declining 3.2%, partially offset by digital sales growth of 4.3%. The company’s operating income margin rate fell to 5.2% from 6.4% a year earlier, while gross margin contracted to 29.0% from 30.0%, reflecting higher markdown rates and purchase order cancellation costs.
Despite the sales challenges, Target reported that all six core merchandising categories saw comparable sales improvements compared to the first quarter, with particularly strong performance in digital channels, where same-day delivery grew more than 25%.