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Target regains its footing under a new CEO and raises expectations for 2026
AP News • • business
Key Points:
- Target reported a 3.8% increase in comparable sales for the second quarter, driven by a merchandising overhaul under new CEO Michael Fiddelke, attracting more customers both in stores and online.
- The retailer benefited from a $994 million tariff refund following a Supreme Court ruling that President Trump overstepped his authority on import taxes, which contributed significantly to earnings per share.
- Target raised its annual sales growth forecast to 5% and expects full-year earnings per share between $9.90 and $10.90, surpassing analyst expectations of $8.52 per share.
- The company is investing in price reductions, store remodels, and new product collaborations, including a back-to-school collection and a new beauty concept replacing Ulta shops.
- Despite strong overall sales, Target continues to work on improving its clothing and home goods departments, which showed minimal growth in the latest quarter.
