Target Shares Plunge 6.33% Despite 246% Volume Surge to $3.22B 16th-Highest on Day as Earnings and Sales Drop

Target (TGT) shares fell 6.33% on August 20, 2025, despite a 246% surge in trading volume to $3.22 billion, the 16th-highest on the day. The retailer reported Q2 earnings of $2.05 per share, down 20.2% year-over-year, with net sales of $25.2 billion, a 0.9% decline. The board appointed Michael Fiddelke as CEO, succeeding Brian Cornell, who will transition to executive chair. Earnings beat estimates narrowly, but comparable sales dropped 1.9%, driven by a 3.2% decline in in-store sales, though digital sales rose 4.3%. Operating income fell 19.4% to $1.3 billion, with gross margins narrowing to 29.0% from 30.0% in 2024. The company maintained its full-year guidance for low-single-digit sales declines and $7–$9 adjusted EPS.

The leadership transition and ongoing operational challenges weighed on investor sentiment. While digital growth and non-merchandise sales (up 14.2%) showed resilience, brick-and-mortar struggles and cost pressures persisted. Management highlighted disciplined expense control and efficiency gains as offsets to tariff-related costs. Fiddelke, a 22-year veteran, assumes leadership amid a challenging retail environment marked by cautious consumer spending and competition from Walmart. The stock’s 7% post-earnings drop and 23% decline in 2025 underscore investor skepticism about near-term recovery.

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