Target Lifts Forecast, Books $994M Tariff Refund
Target Lifts Forecast, Books $994M Tariff Refund
The News
Target raised its annual profit and sales forecast on Wednesday after posting its second straight quarter of comparable sales growth, saying a merchandising overhaul under new CEO Michael Fiddelke is pulling more customers into its stores.
Comparable sales — sales from stores and digital channels open at least 12 months — rose 3.8% in the second quarter.
The retailer said the upgraded outlook reflects a solid first half of the year.
The quarter also included a $994 million tariff refund, according to the Associated Press account carried by CTV News and The Independent.
Timeline
Target's comparable sales fell 3.8% for the year, capping more than a year of weak or declining results. Second-quarter comparable sales that year dropped 1.9%.
Michael Fiddelke, a 20-year company veteran, takes over as chief executive and lays out a plan to restart growth.
Comparable sales jump 5.6%, reversing the prior year's decline.
Target reports a 3.8% comparable sales gain for the second quarter and lifts its annual profit and sales guidance.
Reactions
Fiddelke called the quarter "an important step forward in the plan we laid out earlier this year to open a new chapter of growth for Target."
The company credited new merchandise with attracting more shoppers and lifting sales across its stores.
MarketWatch reported that Target's grocery overhaul is helping win back customers, with the chain adding more snacks and changing how food is presented as it tries to make itself a destination for grocery runs.
What's Next
Target now has to deliver against a raised full-year forecast through the back-to-school and holiday quarters — the stretch that decides whether two good quarters count as a turnaround.
The open question for investors is whether the grocery and merchandise changes keep drawing traffic once the easy comparisons against 2025's declines run out.
More
The tariff refund lands as a windfall for big importers. CNBC reported that US importers could be owed more than $160 billion after the Supreme Court ruled against the White House's emergency tariff authority, and cited an April analysis by Citi estimating Target alone was due about $2.2 billion.
Target's own numbers show why the retailer needed the momentum: comparable sales fell 3.8% across 2025 before Fiddelke took over in February.
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