Target CEO Brian Cornell will step down early next year after more than a decade leading the $107 billion retailer. He will become executive chair, while current COO Michael Fiddelke takes over as CEO on Feb. 1.

The leadership change comes as Target faces sluggish sales, boycotts over its Pride collection, and reduced DEI initiatives.

In its latest quarter, revenue rose slightly from the previous period, but net income fell 21% year-over-year, ABC News has reported.

Shares dropped nearly 8% following the announcement, as the company works to navigate a challenging retail environment and rebuild momentum ahead of the holiday season.