Prime Highlights
- Target raised its full-year sales growth forecast to about 5% after comparable sales beat market expectations.
- Tariff refunds added $752 million to quarterly net earnings, providing a significant boost to results.
Key Facts
- Target is a major US retail chain selling food, beauty, apparel, home goods and other consumer products.
- Comparable digital sales increased 8.7%, while same-day delivery grew more than 25%.
Background
Target has raised its full-year outlook after reporting stronger-than-expected quarterly sales, helped by broad growth across its businesses and a major boost from tariff refunds.
The retailer reported a 5.3% rise in net sales, while comparable sales increased 3.8%, ahead of the 2.4% market estimate. Revenue reached $26.54 billion, compared with the expected $26.14 billion. Adjusted earnings stood at $2.46 per share, above the $2.33 estimate.
Target’s net income rose to $1.88 billion, or $4.11 per share, from $935 million, or $2.05 per share, a year earlier. Tariff refunds added $752 million to net earnings. The company also received a $994 million pretax benefit from the refunds.
Target now expects full-year sales to grow about 5%, an increase of one percentage point from its earlier forecast. It expects full-year adjusted earnings of $9.90 to $10.90 per share, including the tariff benefit. Without the refunds, the forecast stands at $8.25 to $9.25.
Digital comparable sales rose 8.7%, while same-day delivery increased more than 25%. All six major categories recorded sales growth, led by food and beauty. Apparel and home remained weaker areas.
Target has cut prices on more than 10,000 products and plans further reductions. It also opened 17 stores during the quarter.
Chief Executive Michael Fiddelke said the company has made progress but still needs to deliver sustained growth. The retailer is using stronger sales, lower prices and improved product ranges to rebuild customer demand.
