Target’s comeback quarter: New merchandise, more shoppers and a $994M tariff refund

NEW YORK (AP) — Target reported its second straight quarter of comparable sales gains on Wednesday, saying a merchandising overhaul under the retailer’s new CEO is attracting more customers and boosting sales throughout its stores.

Comparable sales — those coming from stores and digital channels operating for at least 12 months —rose 3.8% in the second quarter. The company also upgraded its annual profit and sales outlook, citing the solid performance during the first half of the year.

Target is emerging from more than a year of weak or declining comparable sales. A 5.6% jump in the first quarter reversed a 3.8% decline in 2025. The second-quarter bump followed 1.9% drop a year ago.

Target CEO Michael Fiddelke, a 20-year company veteran who became chief executive in February, said the latest quarter was “an important step forward in the plan we laid out earlier this year to open a new chapter of growth for Target.”