Live updates and results from primary election night

MPR News helps you turn down the noise and build shared understanding. Turn up your support for this public resource and keep trusted journalism accessible to all. 

Turn Up Your Support

Target reported its second straight quarter of comparable sales gains on Wednesday, saying that a merchandising overhaul under the retailer's 

 is attracting more customers and boosting sales throughout its stores.

The retailer also benefited from a tariff refund of $994 million after the U.S. Supreme Court 

 that the Trump administration had overstepped its authority when the tariffs were implemented.

 from the U.S. government will impact retailers and whether those refunds will be used to lower prices for customers.

Chief Financial Officer Jim Lee, when asked about tariff refunds this week, said the company continues to invest in lowering prices. Target reduced the prices of more than 10,000 items over the past year and “there’s more to come even as we’re facing headwinds overall,” Lee said.

Comparable sales, those coming from stores and digital channels operating for at least 12 months, rose 3.8 percent in the second quarter. The company also upgraded its annual profit and sales outlook, citing the solid performance during the first half of the year.

Target is emerging from more than a year of weak comparable sales. A 5.6 percent jump in the first quarter offset a 3.8 percent decline in 2025. The second-quarter gain followed a 1.9 percent drop a year ago.

, a 20-year company veteran who became chief executive in February, said the latest quarter was “an important step forward in the plan we laid out earlier this year to open a new chapter of growth for Target.”

Target also reported an increase in the number of customers going to its stores and shopping on its website from May through July.

“We’re encouraged by the progress made so far, and we’re also clear-eyed about the important work still ahead,” Fiddelke said.

 and to reclaim the retailer’s reputation as a place to go for affordable yet stylish apparel and home goods.

More than half of Target’s back-to-school merchandise is new, the company said.

That includes a limited-time collection of teen and tween clothes, school supplies and accessories in pastel colors and floral prints from the women’s lifestyle brand LoveShack Fancy. Target also collaborated with Hollister on a dorm decor collection.

Target recruited fashion designer and TV personality 

 this summer to fill the newly created role of creative director at large. Mizrahi has been brought in to mentor Target designers, advise on product design and innovation, and forge new partnerships.

It is Mizrahi's second partnership with Target. He became the first major fashion designer to collaborate with the retailer in 2002 for a successful run.

 and improving staffing. The company has more than 100 full-scale remodels underway, with a goal of reaching 130 this year, Fiddelke said Tuesday.

During the second quarter, comparable store sales — sales from established physical stores — increased 2.7 percent, while increased same-day deliveries pushed digital comparable sales up 8.7 percent.

Target is one of the first big retailers to report second-quarter financial results, which could give industry analysts and economists another read on whether ongoing price pressures from the 

The Commerce Department released a report Friday showing 

 in July. The University of Michigan’s consumer sentiment index, also released Friday, showed greater pessimism about the economy this month, likely driven by stubbornly high prices.

Target's overall sales increased in all six of its main merchandising categories, led by double-digit growth in what the company calls Fun 101 — a division that includes consumer electronics, toys, trading cards, sports paraphernalia, books and gaming items.

Net income was $1.87 billion, or $4.11 per share, for the three months ended Aug. 1, easily beating the $2.34 per share that Wall Street had expected, according to a survey by FactSet. It also outpaced last year's $935 million, or $2.05 per share. Yet this year also included millions from tariff refunds, which amounted to $1.65 in earnings per share, Target said.

Net sales rose 5.3 percent to $26.54 billion for the period.

Target now expects sales to increase 5 percent, up from its earlier predictions for a 4 percent gain. It also expects earnings per share for the full year to be in the range of $9.90 to $10.90. Analysts expect $8.52 per share for the year, according to FactSet.

In May, Target reiterated its guidance from March for earnings per share to be near the high end of $7.50 to $8.50.

Business and Economic News

Homepage

The Associated Press

Author

Target is reporting its second straight quarter of comparable sales gains, saying a merchandising overhaul under the discount retailer’s new CEO was attracting more customers.

A new look and fresh merch are winning customers back at Target as sales rebound

Go Deeper.

Like this?

News you can use in your inbox