Target reported its second consecutive quarter of comparable sales growth, with figures rising 3.8% during the second quarter. The retailer also increased its annual profit and sales projections, attributing the improvement to a merchandising strategy implemented under new chief executive Michael Fiddelke.
Fiddelke, who assumed the CEO role in February after two decades with the company, stated that the recent results represent a significant step in the company's plan to launch a new phase of growth. He noted that customer traffic to both physical stores and digital channels increased from May through July.
The company reported that net sales grew across all six primary merchandising categories, with the strongest performance in the Fun 101 division, which includes electronics, toys, and gaming items.
The retailer has been working to reverse a period of declining sales that included a 3.8% drop in 2025. A 5.6% increase in the first quarter of this year had already marked a shift from that prior decline. In March, Fiddelke announced a $6 billion initiative aimed at restoring the brand's reputation for affordable, stylish apparel and home goods.
More than half of the current back-to-school inventory consists of new items, including collaborations with LoveShack Fancy and Hollister.
Target also hired Isaac Mizrahi as creative director at large this summer. Mizrahi, who previously partnered with the retailer in 2002, will mentor designers and advise on product innovation. Additionally, the company has over 100 full-scale store remodels in progress, with a goal of completing 130 by the end of the year.
Financial results for the three months ended August 1 showed earnings of $1.87 billion, or $4.11 per share, compared to $935 million, or $2.05 per share, in the same period last year. This figure includes a $994 million benefit from tariff refunds.
