Walmart and Target earnings focus on new CEOs Furner and Fiddelke

When Walmart and Aim If we release holiday results this quarter, investors may quickly ignore those results.

Instead, they will likely focus more on the future of the two big retailers under new CEOs and the outlook for American consumers in 2026.

Both companies had leadership changes this month: Walmart CEO John Furner and Target CEO Michael Fiddelke, both longtime insiders of the company, assumed their roles on February 1.

Rival retailers have faced the same economic challenges. American consumers are still spending, but buying selectively, as inflation and tariffs drive up prices for food and other staples and make some shoppers think twice about making discretionary purchases.

However, while both Walmart and Target have new CEOs, their paths forward appear distinctly different.

Walmart shares have soared about 163% over the past five years and about 24% over the past year, as of Tuesday's market close. It hit a 52-week high on Tuesday. Target shares, on the other hand, have fallen about 40% over the past five years and 10% over the past year.

Retailers' stock market results reflect their marked divergence in sales results. Walmart is attracting shoppers of all incomes and gaining momentum with online sales and higher-margin businesses like advertising. Target is struggling with slower sales and weaker store traffic. Walmart expects its full-year net sales to increase between 4.8% and 5.1%. Target, on the other hand, is on track to see a decline in sales for the entire year.

Walmart CEO John Furner inherited a business that is “fundamentally sound” and “on a great trajectory,” said Neil Saunders, CEO and retail analyst at GlobalData.

“In many ways, your job is to keep the boat stable and see what you can do to increase speed,” he said.

On the other hand, Target CEO Michael Fiddelke has to “sell the Target of the future” after four years of virtually flat annual sales, Saunders said.

“What I think you'll want to do is inject some excitement, say, 'Look, I'm really excited about this role. I'm really excited about where Target could go. We're going to shake things up. We're going to become a different business. We're going to go back to what we were before,'” he said.

Here's a closer look at what we know so far about the CEOs' plans and what investors will hear during earnings:

Walmart will report its fiscal fourth-quarter earnings before the bell on Thursday.

The retail giant has had a busy few months: In addition to the company landing a new CEO, its market capitalization surpassed $1 trillion in early February. In December, the company switched its stock listing from the New York Stock Exchange to the tech-heavy Nasdaq, a nod to its goal of being perceived by investors more like its main rival Amazon, and was added to the Nasdaq-100 index in January.

When veteran CEO Doug McMillon stepped down from his role, he said in an interview on CNBC's “Squawk Box” that he was passing the torch to Furner as the company accelerates its adoption of artificial intelligence and reshapes its business and the way its customers shop.

Walmart has announced agreements with two major AI chatbot platforms, OpenAI's ChatGPT and Google's Gemini, to make it easier for shoppers to find and purchase its products.

Furner, who like his predecessor rose through Walmart's ranks over decades at the Arkansas-based company, oversaw the company's largest segment in his previous role as CEO of Walmart US. Furner was chosen in part because of his success in expanding Walmart's digital business, a critical piece of its future, said Kate McShane, a retail analyst at Goldman Sachs.

In May, Walmart posted its first profitable quarter for its e-commerce business in the U.S. and globally, as its home delivery, advertising business and third-party marketplace grow.

Corey Tarlowe, a retail analyst at Jefferies, said Walmart investors “want more of the same,” meaning more e-commerce growth, success in supermarkets and market share gains with a broader range of customers, including wealthier shoppers.

However, Walmart's results for the Christmas quarter could mark a turning point in the world of retail. Amazon could take the crown as the largest retailer by annual revenue for the first time, even though the company makes much of its money from technology services such as cloud computing and advertising.

Saunders said the comparison is not apples to apples, but is “symbolically important” as the two competitors try to outdo each other. Walmart has grown in part by relying on stores to deliver food and offer pickup for online orders. Amazon, which recently announced it would close Amazon Fresh and Go stores and convert some into Whole Foods locations, had been trying to “add” fresh foods to its existing huge volume of online orders, he said.

As the country's largest grocer by revenue, Walmart is also fending off the expansion of privately held discounter Aldi, and could feel pressure from the supermarket operator. krogerwhich recently hired Walmart alum Greg Foran as its new CEO.

In a memo sent to employees on his second day as CEO, Furner said his leadership will be shaped by his more than 32 years at Walmart, adding that he believes the company “is well positioned to lead this next era of retail.”

“This next era will unlock new ways to realize our technology-driven, people-led vision,” he said in the memo. “By leveraging our global scale, we can better serve customers and members with speed, reliability and better experiences, wherever they choose to shop with us.”

He said the strategy is already coming to life as “technology and artificial intelligence are helping to reduce friction in our work, simplify decisions, improve inventory flow and free up time so you can focus on what matters most: serving customers, members and each other.”

For Fiddelke, Target's earnings report could be the deepest look yet at the chic, cheap discounter's roadmap for a return to growth.

The company is seeking a comeback and plans to share holiday quarter results and current fiscal year expectations on March 3 at a financial meeting at its Minneapolis headquarters.

The big box retailer has struggled with a long list of challenges. Visits to stores and websites have decreased. Customers have complained about store conditions, including out-of-stock items and long checkout lines. And Target has also dealt with boycotts and backlash over the company's political and social stances, such as its rollback of diversity, equity and inclusion promises and its decision not to publicly oppose increased immigration enforcement in its hometown.

As sales decline, Target has reduced its workforce. Last year it eliminated 1,800 corporate jobs in its first major layoff in a decade.

Target's earnings report is more anticipated than Walmart's because there are many questions about its turnaround strategy and how long it could take, said McShane of Goldman Sachs. Investors have debated how much the company might need to invest in merchandising, marketing and store labor to boost its sales.

“Walmart has pursued a much more aggressive digital agenda than Target between its omnichannel and its automation and its marketplace,” he said.

He added that while Target doesn't want to be Amazon or Walmart, “they have to figure out who they want to be and how to compete.”

Fiddelke has already sent signals that he is making changes. Last week, he announced in an email to employees that Target will increase staffing at stores, though Fiddelke and the company declined to say how much they would invest in additional hours for employees. It is also cutting about 500 positions in distribution centers and regional offices.

Fiddelke revamped Target's leadership team effective Sunday, regaining the role of chief merchant and announcing a high-profile departure. Cara Sylvester, former director of guest experience, became Target's chief merchandising officer, and Lisa Roath, former merchandising director of food, convenience and beauty, succeeded Fiddelke as chief operating officer.

At the same time, chief commercial officer Rick Gomez will leave the company after more than a decade, and Jill Sando, marketing director of apparel and accessories, home, toys and entertainment for the Fun101 division, will retire.

Target has also opened a new concept store in the SoHo neighborhood of New York City. While the location is unique, its focus on fashion can inspire more changes in stores across the country and in the suburbs, McShane said.

That push to introduce more powerful products is an important piece of Fiddelke's strategy. In an email to employees and customers during his first week, Fiddelke laid out four priorities: sharpening Target's merchandising, improving the customer experience, accelerating technology and strengthening the company's workforce and its surrounding communities.

Jefferies' Tarlowe said Target's upcoming investor event is “an opportunity for them to essentially reach out to everyone and say, 'We hear what you want. Here's how we're going to deliver.'”

“Change is happening, it's a question of whether the market sees it and appreciates it,” he said.

Correction: This story was updated to reflect that Walmart changed its listing from the NYSE to the Nasdaq in December and was added to the Nasdaq-100 index in January. An earlier version misstated the date it moved to the Nasdaq stock market and mischaracterized its move to the Nasdaq-100.