 |
| (사진=연합뉴스) |
[Alpha Biz= Paul Lee] MINNEAPOLIS, Aug. 20 — U.S. retail giant Target Corporation (NYSE: TGT) reported second-quarter results that exceeded Wall Street expectations, but continued to show declining sales, sending its shares down nearly 8% in early trading. The company also announced the appointment of Michael Fiddelke, current Chief Operating Officer, as its next Chief Executive Officer.
For the quarter ended August 2, Target posted revenue of USD 25.21 billion and earnings per share (EPS) of USD 2.05, surpassing consensus estimates of USD 24.9 billion in revenue and EPS of USD 2.03. However, results fell short of the prior year, when revenue reached USD 25.45 billion and EPS stood at USD 2.57. Net income slipped to USD 935 million from USD 1.19 billion a year earlier.
Comparable sales declined 1.9% as both transaction volumes (–1.3%) and average basket size (–0.6%) decreased. Heavy discounting, order cancellation costs, and sales growth in lower-margin categories such as toys and electronics weighed on profitability.
Still, digital sales, including online channels, rose 4.3%, while non-merchandise revenue — including advertising, memberships, and marketplace services — climbed 14.2%, partially offsetting weaker core sales.
Target announced that Michael Fiddelke, a 20-year company veteran who has previously served as CFO, will succeed Brian Cornell as CEO effective February 1, 2026. Cornell, 66, will transition to the role of Executive Chairman.
Fiddelke outlined three immediate priorities for his leadership: strengthening Target’s differentiated product offerings, delivering a consistent customer experience, and leveraging technology for greater efficiency.
Target continues to face headwinds, including sluggish sales growth and weakening consumer confidence. Shares have fallen nearly 60% since peaking in late 2021, and store traffic has declined almost weekly since January. The company has also faced controversy over its Pride collection and adjustments to its Diversity, Equity, and Inclusion (DEI) policies, while its beauty partnership with Ulta Beauty is set to expire in August 2026.
Despite these challenges, Fiddelke expressed confidence in Target’s core strengths, highlighting sustained beauty category growth since 2010, even excluding Ulta products. He also emphasized opportunities to restore leadership in home goods, citing success in expanding Disney and Marvel-branded assortments.
Target reaffirmed its full-year guidance, expecting revenue to decline in the low single digits and adjusted EPS in the range of USD 7 to 9.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
