MINNEAPOLIS, MN
“…now is the right time for
new leadership at Target,” said the company’s Board of Directors today as CEO and President Gregg Steinhafel has announced his resignation, effective immediately. This is another step Target has made to
improve its image among consumers and shareholders following the data breach back in November 2013. This is now the company’s chance to
regain investor confidence and potentially bring a huge boost to its stock price, while also
making shareholders money. Will Target succeed?
Relatively speaking, Target’s stock since the breach
wasn’t quite as bad as anticipated. In fact, the retailer has continued to see improvements in its share price. Following the release of its fourth quarter earnings report in February, Target’s shares climbed $3.98 to $60.49, a
7.04% increase – perhaps one of its
best days in the past four and a half years. Looking at Target’s share price from November 27 through December 13, Target only saw a $1.51 decline in its price, or a 2.36% decrease, during the data breach. Overall, investors seem to be relatively
unconcerned about the impact of the cyber attack. There’s no greater opportunity than now to buy back into Target.
John Mulligan, Chief Financial Officer, will be appointed as interim President and CEO.
Roxanne S. Austin, a current member of Target’s Board of Directors, has been appointed as interim non-executive chair of the board. Both will serve in their roles until permanent replacements are named, according to a press release. Steinhafel has agreed to serve as an advisor during this transition.
“The board is deeply grateful to Gregg for his significant contributions and outstanding service throughout his notable
35-year career with the company. We believe his passion for the team and relentless focus on the guest has established Target as a leader in the retail industry,” said the Board of Directors in a note. “We are grateful to him for his
tireless leadership and will always consider him a member of the Target family.”
The Board says it is confident in the future of the company and views this transition as “an opportunity to
drive Target’s business forward and accelerate the company’s transformation efforts.”
Shortly after the news of the CEO's resignation broke out, Target’s shares fell approximately $1.77 to $60.24, a 2.85% decrease.
With this latest transitional move, it looks like Target is back on track. How else will the company transform and can it continue moving up from here? We'll just have to wait and see as Target seeks its new CEO...
Target
