TGT: Target Stock Plummets 7% on Sales Drop. Firm Guidance Didn’t Inspire Share Shopping

Big-box retailer couldn’t inspire confidence in traders and investors as it announced a CEO reshuffle — a 20-year Target veteran is taking the lead.

📉 Sales Slide Despite Earnings Beat

• Target stock TGT tumbled 7% in pre-market trading Wednesday as declining sales overshadowed a slight earnings beat and a steady outlook.
• The big-box retailer just dropped a cartful of updates — earnings, a leadership shake-up, and fresh guidance — but Wall Street wasn’t in the mood to check out.
• Target beat Wall Street’s earnings and revenue estimates, posting $2.05 EPS vs. $2.03 expected and $25.21 billion in revenue vs. $24.93 billion forecast. But the headline numbers didn’t save sentiment.
• Comparable sales fell 1.9% from last year, with weaker traffic both online and in-store — evidence that shoppers remain cautious amid persistent inflation pressures and tighter budgets.
• Net income dropped to $935 million ($2.05 a share) from $1.19 billion ($2.57 a share) last year, marking another quarter of declining profitability despite cost-cutting efforts. Revenue slid from last year’s $25.45 billion.

🛒 Leadership Shuffle Signals Reset Mode

• Target announced that Chief Operating Officer Michael Fiddelke — a 20-year company veteran who’s also served as CFO — will become CEO on Feb. 1.
• Current CEO Brian Cornell will transition to executive chair, a move supposed to keep strategic continuity while giving Fiddelke the reins to engineer a growth turnaround.
• Wall Street isn’t convinced yet — Wednesday’s selloff suggests investors want proof the new leadership can reignite traffic and stabilize margins before buying back in.

📊 Outlook Steady, Stock Not So Much

• Target reaffirmed full-year guidance, signaling confidence in its ability to recover despite sales softness and a competitive retail landscape. For the year, the company is eyeing a low single-digit percentage decline in sales.
• But investors remain skeptical: shares have plunged nearly 60% from their late-2021 peak, pricing in doubts over Target’s positioning in a consumer-spending slowdown.
• While the company leans on efficiency, private labels, and digital growth, traders need something stronger and tangible before doing their shopping for shares on discount.