Target posts strong quarter boosted by new merchandise and a $994M tariff rebate

Target announced a second consecutive quarter of comparable-sales growth, with a 3.8% increase driven by higher foot traffic and online activity. Net sales rose 5.3% to $26.54 billion, and earnings more than doubled to $1.87 billion, or $4.11 per share, aided by a $994 million tariff refund that contributed $1.65 per share. The company’s $6 billion revitalization plan includes new back-to-school merchandise, collaborations with LoveShack Fancy and Hollister, and the hiring of designer Isaac Mizrahi as creative director.

Over 100 store remodels are underway, targeting 130 by year-end. Digital comparable sales surged 8.7% thanks to same-day delivery, while the “Fun 101” category posted double-digit growth. CFO Jim Lee emphasized continued price reductions for shoppers despite broader economic headwinds.