Target reported a second straight quarter of comparable sales gains on Wednesday, saying that a merchandising overhaul under the retailer’s new CEO attracted more customers and boosted sales both in stores and online.
The mass-market discount retailer also benefited from a tariff refund of $994 million after the U.S. Supreme Court ruled this year that President Donald Trump overstepped his authority when he imposed double-digit import taxes on goods from most other countries.
There is a lot of interest in how tariff refunds from the U.S. government will impact retailers and whether those refunds will be used to lower prices for customers.
Chief Financial Officer Jim Lee, when asked about tariff refunds this week, said the company continues to invest in lowering prices. Target reduced the prices of more than 10,000 items over the past year and “there’s more to come even as we’re facing headwinds overall,” Lee said.
Comparable sales, those coming from stores and digital channels operating for at least 12 months, rose 3.8% in the second quarter. The company also upgraded its annual profit and sales outlook, citing the solid performance during the first half of the year.
