The retailer reports stronger-than-expected sales growth, lifting full-year guidance despite lingering merchandise challenges in key categories.
Target posted a 5.6% increase in second-quarter sales, reversing a 1.9% decline from the same period last year. The gain follows a 3.8% drop in early 2025 and a first-quarter rebound, signaling progress in its turnaround efforts under CEO Michael Fiddelke.
The company raised its annual forecasts for the second time this year, citing improved customer traffic and fresh merchandise. However, Chief Merchandising Officer Cara Sylvester acknowledged ongoing struggles in home and apparel, with fixes expected to extend into 2027.
Shares reacted modestly as investors weighed the sales recovery against persistent execution risks in underperforming categories.