Target Raises Full-Year Guidance After Q2 EPS of $4.11, Boosted by $994M Tariff Refund
TGT sits 81% above its 52-week low of $83.44.
Summary
Target reported Q2 EPS of $4.11, beating expectations, and raised full-year guidance. Results were boosted by a $994M tariff refund, but underlying performance was also strong with 3.8% comparable sales growth.
Key Events · Earnings and Guidance · TGT
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Q2 EPS Beats at $4.11
GAAP and Adjusted EPS of $4.11, up 100% from $2.05 last year. Includes $1.65 per share from a $994M tariff refund; excluding refunds, EPS rose 20%.
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Full-Year Guidance Raised
Net sales growth now expected around 5% (up 1 point), operating margin around 6%, and EPS guidance raised to $9.90-$10.90 from $7.50-$8.50.
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Comparable Sales Growth Accelerates
Q2 comparable sales up 3.8%, with store comps up 2.7% and digital comps up 8.7%. Traffic increased 3.6%.
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Tariff Refund Boosts Margins
$994M pretax tariff refund added 3.7 percentage points to gross margin and operating margin. Excluding refunds, gross margin still expanded ~100 bps.
Analysis · TGT · Trade & Services
Target delivered a strong second quarter with EPS of $4.11, up 100% year-over-year, driven by a $994 million tariff refund benefit and broad-based sales growth. Excluding the one-time refund, EPS still rose 20%, and management raised full-year guidance across sales, operating margin, and EPS. The company is executing well on its strategy, with comparable sales up 3.8% and digital growth accelerating. This is a clear positive signal for the stock, especially as it trades near its 52-week high.
At the time of this filing, TGT was trading at $151.28 on NYSE in the Trade & Services sector, with a market capitalization of approximately $69.3B. The 52-week trading range was $83.44 to $156.47. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.