Target reports Q2 sales rebound and raises annual outlook

Target Corporation has reported a significant rebound in its second-quarter performance, marked by a 5.3% increase in net sales to $26.5 billion and a 3.8% rise in comparable sales. This growth follows a period of declining sales and is attributed to a merchandising overhaul led by CEO Michael Fiddelke, which includes refreshed product assortments and strategic price cuts on over 10,000 items.

Earnings were substantially bolstered by a $994 million tariff refund following a U.S. Supreme Court ruling regarding the legality of certain import taxes. CFO Jim Lee stated that the company intends to use these funds to invest in lower prices for customers rather than issuing direct consumer refunds.

While core categories like beauty, food and beverage, and hardlines showed strength, executives noted that the apparel and home sectors require further improvement. Due to these results, Target has raised its full-year 2026 outlook, projecting annual net sales growth of approximately 5% and earnings per share in the range of $9.90 to $10.90.