Target Shares Decline After Solid Earnings Report, Leadership Transition

Target beat Wall Street’s earnings and sales expectations in the fiscal second quarter but reported ongoing declines in store traffic and transactions, according to CNBC. The retail giant posted earnings of $2.05 per share versus $2.03 expected and revenue of $25.21 billion versus $24.93 billion expected. Comparable sales fell 1.9% year over year, while customer transactions declined 1.3% and average spending per visit dropped 0.6%. Target announced that Chief Operating Officer Michael Fiddelke, a 20-year company veteran, will become CEO on February 1st. He will succeed Brian Cornell, who will become executive chair. Fiddelke said his top priorities include restoring Target’s reputation for unique merchandise, improving customer experience, and using technology for efficiency. Shares fell about 8% in premarket trading following the earnings and leadership transition news.