Target reported a second consecutive quarter of comparable sales growth on Wednesday, driven by a merchandising overhaul and a $994 million tariff refund following a U.S. Supreme Court ruling. Comparable sales rose 3.8% in the second quarter, boosting the retailer's performance after a challenging 2025. The company also raised its annual profit and sales outlook, reflecting strong results in the first half of the year, according to fortune.com.
The tariff refund came after the Supreme Court ruled that former President Donald Trump exceeded his authority by imposing double-digit import taxes on goods from most countries. Target’s Chief Financial Officer Jim Lee said the company is using the refund to invest in lowering prices, having already reduced prices on more than 10,000 items over the past year. CEO Michael Fiddelke, a 20-year company veteran, led the merchandising changes that attracted more customers both in stores and online, according to fortune.com.
Target’s turnaround follows a 3.8% sales decline in early 2025 and a 1.9% drop in the second quarter of last year. The 5.6% jump in the first quarter of 2026 and the latest 3.8% gain demonstrate a steady recovery. The tariff refund and price cuts come amid broader industry interest in how such government actions affect retail pricing and competition. Target’s approach contrasts with other retailers that have faced headwinds in comparable sales, positioning it as a notable case in the sector, per fortune.com.
Target’s upgraded outlook for the full year reflects confidence in sustained momentum, with the retailer emphasizing investments in price reductions despite ongoing challenges. The company’s second-quarter results and tariff refund mark a significant milestone in its recovery, as detailed by fortune.com.