Target reports strong second-quarter earnings and revenue growth

Target has reported two consecutive quarters of growth, signaling a potential turnaround for the Minnesota-based retailer. In its second-quarter earnings report, the company exceeded estimates with revenue climbing 5.3% year-over-year to $26.5 billion. Digital sales saw an 8.7% increase.

Total earnings were significantly bolstered by a one-time tariff refund from the federal government totaling nearly $1 billion. Without this repayment, the company's adjusted earnings per share (EPS) would have grown 20% compared to the same period last year. Consequently, Target has raised its full-year EPS guidance to a range between $9.90 and $10.90.

Despite these gains, analysts note the recovery remains fragile. Growth in apparel and home categories is minimal, and the company continues to work on rebuilding its reputation following previous consumer backlash. Future performance may also be impacted by external economic factors such as inflation and ongoing tariff pressures.