Target's second-quarter results beat estimates, helped by a nearly $1 billion tariff refund. Even without that one-time boost, adjusted earnings per share would have grown 20% from a year earlier, and the retailer raised its full-year guidance as its stock rally continues.
Target's latest quarter shows its turnaround is holding up, not just riding a one-off windfall. The retailer received a tariff refund from the federal government totaling nearly $1 billion, which lifted its earnings beat. But strip that refund out, and adjusted earnings per share still would have grown 20% from the same period last year.
Revenue rose 5.3% year over year to $26.5 billion, while digital sales grew 8.7%. As a result, the company raised its full-year EPS guidance to a range of $9.90 to $10.90.
The stock jumped on the report, trading up 4.54%, or $7.19, to $165.44. That move builds on a broader run: Target's stock had risen 65% year to date as of Aug. 19.
Still, Target remains well below its 2021 peak and is rebuilding a reputation damaged by boycotts and public backlash over its reversal of diversity, equity, and inclusion initiatives. This marks the second consecutive quarter of strong earnings, showing the retailer's efforts to win back shoppers are working. However, much of the turnaround's path ahead could depend on factors outside Target's control, as inflation and tariff pressures keep consumers' wallets lean.
Source: The Motley Fool
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