Target is set to report earnings before the bell. Here's what to expect
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- Target posted Q2 net sales up 5.3% year-over-year, with comparable sales rising 3.8% versus the 2.4% Wall Street estimate compiled by StreetAccount.
- Target's quarterly results got a one-time boost from tariff refunds — a $994 million pre-tax benefit to gross margin and operating income, adding $752 million ($1.65 per share) to net earnings.
- Target raised its full-year net sales growth guidance to roughly 5%, up one percentage point, and lifted its EPS range to $9.90–$10.90 including refunds ($8.25–$9.25 excluding), versus the prior $7.50–$8.50 outlook.
- Target reported revenue of $26.54 billion versus the $26.14 billion analysts expected, with net income of $1.88 billion ($4.11 per share) compared with $935 million ($2.05) a year earlier.
- Target's digital comparable sales jumped 8.7% in the quarter, same-day delivery grew more than 25%, and the retailer opened 17 new stores in the period.
- Target said all six major product categories grew, but apparel and home lagged — CEO Michael Fiddelke pointed to changes in decorative accessories as the template for fixing those segments.
- Target has lowered prices on more than 10,000 items and its stock is up more than 55% year-to-date, though Fiddelke warned reporters: 'We have much more work to do.'
Why it matters: Strip out the $994 million tariff-refund windfall and Target's raised EPS guide still moves to $8.25–$9.25 from a prior $7.50–$8.50, so the organic story is real comps (+3.8% vs. +2.4% expected) plus digital (+8.7%) carrying the turnaround — but the headline beat is inflated by a one-time repayment, and the CEO won't declare victory yet, putting the 55%-plus YTD stock rally on a watch.
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