Target reported higher quarterly earnings on Wednesday, driven by tariff refunds, and upgraded its full-year outlook, suggesting the retailer’s turnaround is gaining momentum.
The company reported revenue of $26.54 billion vs. $26.14 billion expected, a 5.3% increase in net sales from the previous year. Comparable sales rose by 3.8%, topping Wall Street expectations of 2.4%.
Additionally, Target mentioned in its statement that it experienced “broad-based” strength across various categories.
“Second quarter results build on the encouraging momentum we saw in the first quarter, giving us increasing confidence that our strategy is resonating with our guests and strengthening our leadership position in style, design, and value,” said Michael Fiddelke, Chief Executive Officer of Target.
“Over the past year, we’ve reduced prices on more than 10,000 frequently purchased items as part of our commitment to delivering outstanding value every day, while continuing to invest in newness, convenience, and an elevated shopping experience. While there’s still meaningful work ahead, we’re encouraged by the progress we’re making and remain focused on executing with discipline, staying agile in a dynamic operating environment, and investing in our team and capabilities to drive sustainable, profitable growth over the long term.”
Following the release, Fiddelke told reporters, “We’re encouraged by the progress made so far, and we’re also clear-eyed about the important work still ahead. Q2 is an important step forward in the plan we laid out earlier this year to open a new chapter of growth for Target. What you saw from us this quarter reflects the level of change we knew would be needed to put our strategy in motion.”
Since the beginning of 2026, Target has actively worked to correct its merchandising issues to boost traffic both in stores and online.
The company has expanded its wellness offerings, introduced 3,000 new beauty items from 60 brands, refreshed 75% of its home decorative accessories, accelerated food and beverage innovation, and launched a refreshed back-to-school collection.
Despite the results, Target shares fell 1% in premarket trading on Wednesday after the announcement.
By CEO NA Editorial Staff
