Fiscal second-quarter sales at Target topped analyst estimates, and the company raised its full-year guidance. A tariff refund, described as large, contributed to the quarterly result, Target said.
Target characterized the performance as evidence its turnaround is gaining pace. The retailer lifted its annual guidance on the back of the Q2 beat, with the tariff refund cited as a meaningful driver of the outperformance.
The refund is the figure that complicates the read. A benefit of that scale can run ahead of the underlying business trend, and the raised full-year outlook is the company's statement that the improvement extends beyond the refund itself.