U.S. discount retailer Target (TGT) has reported a big profit for this year’s second quarter due to a large tariff refund the company received from the Trump administration.
The Minneapolis-based company announced earnings per share (EPS) of $4.11 U.S., which was far ahead of the $2.33 U.S. expected on Wall Street.
Revenue in the spring quarter totaled $26.54 billion U.S., which topped the $26.14 billion U.S. consensus expectation of analysts. Sales were up 5.3% from a year earlier.
Management said that the second-quarter results included a $752 million U.S. boost to net earnings, equal to $1.65 U.S. per share, from tariff refunds.
U.S. President Donald Trump has been forced to refund tariff payments to U.S. businesses after the Supreme Court struck down his administration’s first round of import duties.
Target raised its full-year guidance, saying it now expects net sales growth of 5%, up one percentage point from its previous outlook.
The company also expects full-year earnings, including tariff refunds, of $9.90 U.S. to $10.90 U.S. per share. That’s up from its previous outlook of $7.50 U.S. to $8.50 U.S. a share.
Target is undertaking a multiyear turnaround strategy after the company’s sales slumped coming out of the Covid-19 pandemic and it lost ground to rival Walmart (WMT).
Last quarter, Target reported its first positive same-store sales number in five quarters, an increase of 5.6%.
Executives at the retailer said the Q2 results were also helped by strength in the food and beauty businesses, as all six of its major categories grew during the quarter.
Target also said it has lowered prices on more than 10,000 items this year, with more reductions planned for the rest of 2026.
TGT stock has increased 52% this year to trade at $152.48 U.S. per share.
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