TGT reports stronger-than-expected earnings, lifts sales and profit forecasts, and sees traffic growth across all departments.
Target posted second-quarter earnings that exceeded analyst estimates, driven by price cuts and a merchandise overhaul. Sales rose across all categories, with beauty and food leading growth, while store traffic increased. The retailer raised its full-year sales and profit outlook, citing strong consumer response to changes in product offerings and pricing strategies.
The results mark the second consecutive quarter of improvement after a challenging 2024 and early 2025. Target has reset 75% of its home decorative accessories, expanded wellness products, and added 3,000 beauty items across 60 new brands. Analysts note the broadest merchandising shift in a decade, aimed at sustaining long-term top-line growth.
CEO Michael Fiddelke described the progress as encouraging but emphasized ongoing work to achieve years of consistent growth. The company’s focus remains on executing its turnaround plan, which includes accelerating food and beverage innovation and refreshing back-to-school assortments.