New CEO for Struggling Retail Giant
A well-known retail company is looking to shake things up and get back into the good graces of Wall Street by appointing industry veteran, Michael Fiddelke, as its new CEO. This announcement comes at a crucial time as the company aims to break free from a period of slow sales growth.
Fiddelke, 49, who has previously held the roles of chief financial officer and chief operating officer at the company, will take over from the existing CEO, Brian Cornell, on February 1. Cornell has been at the helm since 2014 and will transition into the role of executive chair on the company's board of directors.
Quarterly Results and Market Response
The company announced this change in leadership on the same day it released its fiscal second-quarter results. While it managed to beat Wall Street's sales and earnings expectations for the quarter, it continues to predict a decrease in annual sales. This news led to a 10% drop in the company's shares in premarket trading, despite Wall Street's initial preference for an external candidate for the CEO position.
Fiddelke's appointment comes as the company is attempting to re-establish its footing and foster growth. The company's annual sales have remained stagnant for the past four years, even though sales surged during the pandemic.
Goals and Priorities
During a press conference, Fiddelke stated that he will work towards rebuilding momentum and returning the company to profitable growth. He identified three key areas of focus: restoring the company's reputation as a provider of unique and stylish items, enhancing customer experience, and leveraging technology for efficient business operations.
"We've built a solid foundation, and we're proud of the many ways that our company is unique in American retail," he said. "We also have real work in front of us."
Background and Experience
Fiddelke has been with the company for 20 years and has held various leadership roles in merchandising, finance, operations, and human resources. In May, he was chosen to lead a new initiative called the Enterprise Acceleration Office, designed to improve the company's performance.
However, the company's performance has shaken investor confidence, with shares falling about 60% from their peak in 2021. The company's stock had dropped 22% in 2025 alone as of Tuesday's close.
Challenges Ahead
The company has faced criticism for the perceived decline in its key strengths, such as its range of attractive products, tidy stores, and friendly staff. It also faces stiff competition from rivals, increased costs due to tariffs, and backlash over reversed diversity, equity and inclusion policies.
In addition, the company is ending a deal in August 2026 that allowed mini beauty shops to open in nearly a third of its stores.
External Search for CEO
Despite Wall Street's preference for an external hire, the company's board of directors chose Fiddelke after an extensive search and assessment of various strong candidates over several years.
"Michael's tenure gives him unmatched enterprise insight and a base of strong team trust," said Christine Leahy, lead independent director of the company's board of directors. "But what sets him apart is how he combines those strengths with a 'fresh eyes' mindset, challenging the status quo to evolve how the business operates, differentiates and delivers long-term value."
When asked what message they have for investors hoping for fresh ideas from an external hire, Fiddelke responded, "I understand this business. I understand what makes our company distinctly unique. And I've seen us at our best, and I've seen us when we're not at our best, and that informs my candid assessment today of where we have work to do."
He concluded, "My number one goal is to get us back to growth."