The retailer's sales jumped 11.3% but margins were pressured as consumers switched to e-commerce amid the coronavirus crisis.
The retailer conducted an extensive global search before appointing Fiddelke to succeed Cathy Smith.
“The next person in that chair has some big shoes to fill," a Moody's analyst says.
The retailer "may hit the top line, like you saw this quarter, but will we see that flow through to the bottom line?" one analyst says.
The Christmas period results give "some validation to Target’s expensive plan to improve stores, delivery logistics, and customer service."
The retailer's forecast of flat to 2% growth in fourth-quarter same-store sales appeared to revive investors' doubts over its turnaround plan.
“For a little while, [Target] seemed to have lost its way but now appears to be getting back into that 'Tar-jay' mode."
"Target's not out of the woods, yet," a retail analyst says. "The road to improvement will be long."
The retailer's shift to a new business model "will present headwinds to our sales and profit performance in the short term."
The 1.1% drop in comp sales for Q3 was a relief to investors and Target now forecasts as much as a 1% increase for the next quarter.
Same-store sales gained 1.2% in Q1, missing analysts' estimates, and Target is expecting growth to be flat or lower in coming months.
The retailer posted a 34% increase in digital sales but holiday-season promotions aimed at driving that growth cut into profits.
