Target CorporationTGT
▲ PositiveCapitalrelevance
Strong Q2 earnings beat and raised full-year guidance
Impact on stocks 1
Consumer Staples
Target CorporationTarget Raises Full-Year Guidance After Strong Q2 Earnings
Earnings
Target reported second quarter GAAP and adjusted EPS of $4.11, up from $2.05 last year, with tariff refunds contributing $1.65 to EPS; excluding these refunds, both GAAP and adjusted earnings per share were approximately 20% higher than a year ago. Net sales rose 5.3% to $26.5 billion, with comparable sales up 3.8% and traffic up 3.6%. The company raised its full-year net sales growth guidance to around 5% and its EPS range to $9.90 to $10.90, up from $7.50 to $8.50, excluding any potential additional tariff refunds. Target also reported a gross margin rate of 33.7%, including a 3.7 percentage point benefit from IEEPA tariff refunds, and an operating margin rate of 9.6% versus 5.2% last year. The company plans to resume share repurchases in the back half of the year and continues to expect approximately $5 billion in capital expenditures for the full year.
Target CorporationStrong Q2 earnings beat and raised full-year guidance