Target’s second straight comeback quarter boosted by nearly $1 billion Trump tariff refund

Target posted a second consecutive quarter of improved comparable sales, driven by a merchandising overhaul and a $994 million tax refund following a Supreme Court ruling on President Trump's trade tariffs. CFO Jim Lee noted the company remains committed to lowering prices, having already reduced the cost of over 10,000 items. Target's comparable sales rose 3.8% in the second quarter, surpassing its initial profit and sales outlook for the year.

CEO Michael Fiddelke highlighted this as a "step forward" in opening a new growth chapter for the retailer. The CFO unveiled a $6 billion plan in March to reverse sales decline and restore Target's reputation as an affordable yet stylish destination. Fiddelke also introduced a new leadership role for fashion designer Isaac Mizrahi, who will mentor designers and advise on product innovation.

Target's overall sales growth was seen in all six main categories, with notable increases in electronics, toys, and gaming. The retailer expects a 5% sales increase for the year, up from a previous 4% projection.