Target Corporation (NYSE:TGT) shares fell about 7% on Wednesday after the retailer reported second-quarter results that narrowly topped estimates but continued to show sales weakness, while also announcing a leadership transition.

The company posted adjusted EPS of $2.05, slightly above the $2.04 consensus, on revenue of $25.2 billion, ahead of expectations of $24.9 billion. Net sales fell 0.9% from the prior year but showed improvement from the steeper decline seen in the first quarter.

Target's board named Chief Operating Officer Michael Fiddelke as the company's next CEO, effective February 1, 2026, succeeding Brian Cornell, who will transition to executive chair of the board.

The retailer reaffirmed its full-year outlook, projecting a low-single-digit sales decline and adjusted EPS between $7.00 and $9.00, compared with analyst expectations of $7.34.

Comparable sales declined 1.9% in the second quarter, with store sales down 3.2%, partly offset by digital sales growth of 4.3%. Operating income margin fell to 5.2% from 6.4% a year earlier, while gross margin contracted to 29.0% from 30.0%, reflecting higher markdowns and purchase order cancellation costs.