Target shares encouraging second-quarter results as Michael Fiddelke is named the company’s next chief executive officer.
Target posts improved sales and appoints new leader
Target Corporation reported $25.2 billion in Q2 net sales, down 0.9% from last year but showing stronger in-store traffic and nearly two percentage points better performance than the previous quarter. All core merchandise categories saw improvement, and digital comparable sales grew 4.3% thanks to Target Circle 360’s same-day delivery and robust Drive Up growth.
Non-merchandise sales—including advertising, memberships, and marketplace—jumped 14.2%, highlighting growth beyond traditional retail. GAAP and adjusted earnings per share were $2.05, reflecting solid cost management despite ongoing pressures.
Leadership moves signal new direction
The board unanimously appointed Michael Fiddelke as CEO. His experience comes at a key moment for Target.
“Michael brings a deep understanding of our business and a genuine commitment to accelerating our progress,” said Brian Cornell. “He’s contributed meaningfully during times of change and played a critical role in establishing the differentiated capabilities that will continue to drive Target forward.”
Cornell also noted the company’s “encouraging signs of recovery, including improved traffic and sales trends—particularly in our stores—and disciplined cost management in a challenging retail environment. 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.”
Key financials and outlook
- Net sales $25.2 billion, down 0.9% year-over-year
- Operating income $1.3 billion, down 19.4%
- Comparable digital sales up 4.3%
- Non-merchandise sales up 14.2%
- GAAP and Adjusted EPS $2.05
- Fiscal 2025 guidance: low-single digit sales decline, GAAP EPS $8.00–$10.00, Adjusted EPS $7.00–$9.00
Dividend payments remained steady at $509 million, with $8.4 billion in share repurchase capacity. Return on invested capital for the trailing twelve months was 14.3%.
Looking ahead
With renewed leadership and positive store momentum, Target is focused on driving consistent results and preparing for the busy back-to-school and holiday quarters ahead.
