Target stock (NYSE: TGT) plunged 10% in pre-market trading on Wednesday after the retailer unveiled a new CEO and repeated its annual forecast, a combination that did little to calm nerves on Wall Street.
The drop was the clearest sign yet that investors remain unconvinced Target can shake off sluggish sales and a shaky consumer backdrop that has weighed on results for nearly three years.
The company tapped Michael Fiddelke, its chief operating officer and a Target veteran, to succeed Brian Cornell as chief executive in February 2026.
Cornell, who has run the company since 2014, will step into an executive chairman role. While the handoff was framed as a steady transition, the market focused less on succession plans and more on the lack of fresh momentum in Target’s guidance.
The message seemed clear: until sales improve, investors aren’t buying the turnaround story.
Target stock: Doubts across retail space
Target kept its full-year profit outlook, but that wasn’t enough to calm nerves. The company has now logged 11 straight quarters of flat or falling sales, showing just how tough it’s been to get shoppers spending again while tariffs and higher costs bite into margins.
Yes, profits came in a bit better than expected, but the top line still told the story of a retailer stuck in neutral.
Shares tumbled 10% in pre-market trading, sliding under $95 and setting up for the stock’s worst day in years.
The drop reflects more than just frustration with Target as it highlights doubts across the retail space over whether big chains can adjust to changing shopping habits while also dealing with inflation, soft demand, and supply-chain strains tied to global tensions.
Target’s slide fed into a softer mood on Wall Street, where tech names were already dragging the market lower. Traders were also keeping their heads down ahead of the Fed’s meeting minutes later in the day, looking for any hint on where rates might go next.
The combination left markets uneasy and reluctant to make big moves.
What analysts say?
The analysts noted that Target’s problems mirror the rest of retail, with big-box names squeezed by online rivals, shoppers pulling back, and costs climbing.
Bringing in Michael Fiddelke as the next CEO makes sense given his time inside the company, but there’s little expectation it will turn things around quickly.
Investors want to see if he can push through changes fast enough in a tough environment.
Analysts said holding onto the annual guidance doesn’t change the fact that Target is stuck in a tough margin and sales backdrop.
With tariffs still biting and shoppers watching their wallets, the risk is that margins get squeezed even more in the next few quarters.
Others stressed that Target needs to move faster on digital and tighten its supply chain if it wants to win back ground.
Rivals that shifted earlier to omnichannel models and smarter inventory control have managed to hold onto customers and keep sales momentum.
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