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

Target reported a second straight quarter of comparable sales gains on Wednesday, attributing the success to a merchandising overhaul under the new CEO. The company benefited from a tariff refund of $994 million after the Supreme Court ruled that President Trump imposed excessive import taxes on foreign goods. Target CEO Michael Fiddelke, a 20-year veteran, unveiled a $6 billion plan to reverse sales slump and reclaim Target's reputation for affordable, stylish apparel and home goods.

The company reported an increase in the number of customers visiting stores and shopping on its website from May through July. Target's overall sales increased in all six primary merchandising categories, led by double-digit growth in the "Fun 101" division, which includes electronics, toys, and gaming items. The company will also introduce a Target Beauty Studio concept in over 600 stores.