Target Reports Earnings Beat and Raised Guidance Amid Turnaround Efforts
Retailer Target (TGT) reported better-than-expected second-quarter earnings as part of its ongoing turnaround strategy. Sales rose across all merchandise categories, with notable growth in beauty and food departments, while store traffic also increased. The company raised full-year sales and profit outlooks following a series of merchandising changes aimed at improving customer engagement. CEO Michael Fiddelke emphasized that the progress is part of a broader transformation plan involving significant shifts in product offerings and pricing strategies to compete with rivals like Walmart (WMT) and Kroger (KR). Target has introduced thousands of new products, reset its home décor selection, expanded wellness options, and cut prices on 10,000 items. Analysts suggest these changes are beginning to drive improved traffic trends. The second-quarter results included a boost from tariff refunds, with net sales rising 5.3% year-over-year to $26.5 billion versus estimates of $25.5 billion and diluted earnings per share jumping 100% to $4.11 against expectations for $2.32.
