Quick overview

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Target’s stock (TGT) fell 7% and was among the largest decliners in the S&P 500 on Wednesday after the struggling retailer, despite showing signs of improvement in the second quarter, replaced its CEO with a veteran of the company. Michael Fiddelke, a longtime employee, will replace Brian Cornell at Target in February, the company announced.

Cornell will take on the role of executive chair of the board after serving in that capacity for eleven years.

Fiddelke recently launched and took charge of the Enterprise Acceleration Office, which Target stated was intended to change the way the company functions by “removing complexity, expanding technology, and enabling more flexibility so the team can move faster to improve performance and drive long-term growth.”

“Michael is the right leader to return Target to growth, refocus and accelerate the company’s strategy, and reestablish Target’s position as a leader in the highly dynamic and fast-moving retail environment,” said Christine Leahy, an independent board member, who stated that the board has been deliberating over a succession plan for several years

Sales decreased 0.9 percent year over year to $25.21 billion, but that was higher than what Visible Alpha’s survey of analysts predicted.

The $2.05 adjusted earnings per share (EPS) were consistent with forecasts. According to Cornell, the results “showed encouraging signs of recovery, including disciplined cost management in a challenging retail environment and improved traffic and sales trends, particularly in our stores.”