Target Shares Rise on Q2 Earnings Beat and Raised Guidance
Shares of Target rose nearly 5% after the retailer reported a significant beat in second-quarter earnings per share (EPS), driven largely by a one-time tariff refund. The company also raised its full-year EPS guidance to $9.90–$10.90, up sharply from previous estimates and well above fiscal 2025 results. Target's Q2 net sales increased 5.3% year-over-year (YoY) to $26.54 billion with comparable store sales rising 3.8%. The company attributed the strong performance to a merchandising reset, price investments, and traffic recovery across all departments—especially beauty and food. Gross margin improved significantly due in part to tariff refunds. Despite the headline boost from one-time gains, underlying operational improvements were more modest but real. CEO Michael Fiddelke emphasized that sustained top-line growth remains a key focus for years ahead.
Topics: guidance_upgrade retail tariff_refunds