TGT reports second consecutive quarter of sales growth, fueled by 3.8% same-store sales increase and improved foot traffic.
Target posted 5.3% year-over-year revenue growth for the quarter ending in early August, driven by a 3.8% rise in same-store sales and a 3.6% increase in foot traffic. The results mark the retailer’s second strong quarter following a disappointing year that ended in February, signaling progress in its strategic turnaround plan unveiled in March.
The company attributed the rebound to investments in store personnel, smarter merchandise assortment, and AI-driven decision-making. Prior quarters had struggled with declining sales and traffic, but guidance suggests sustained improvement ahead. CEO Michael Fiddelke, who took over in August 2023, has overseen the shift after two decades with the company.
Shares have surged 85% from October’s lows, raising questions about further upside. Analysts note the turnaround appears durable, though valuation remains a consideration after the recent rally.