Target Raises 2026 Outlook Following Q2 Sales Growth

Target Corporation has reported stronger second-quarter 2026 results, with net sales rising 5.3% to US$26.5 billion and comparable sales increasing 3.8%. This growth has prompted the retailer to raise its full-year sales and earnings outlook.

The broad-based growth across Target's business is attributed to several factors. Comparable store sales increased 2.7%, while digital comparable sales rose 8.7%. All six core merchandising categories recorded year-on-year sales growth, with Beauty delivering high single-digit growth.

Beauty was a standout performer in the second quarter, with high single-digit growth contributing to the broad-based improvement across the US retailer's business. This growth is likely to have been driven by the increasing popularity of makeup and the shade system that makes it work on a given skin tone.

The operating income for the quarter doubled to US$994 million in tariff refunds. Excluding tariff refunds, earnings per share (EPS) increased 20% year on year. Target now expects full-year net sales growth of around 5%, one percentage point above its previous guidance, and has raised its underlying earnings expectations.

## Target Raises 2026 Outlook

The decision to raise the 2026 outlook is a result of the strong second-quarter performance. Target's ability to deliver high single-digit growth in the Beauty category is a key factor in this decision.

## Beauty Delivers High Single-Digit Growth

The Beauty category has been a key performer for Target in the second quarter. With high single-digit growth, this category has contributed significantly to the broad-based improvement across the US retailer's business.

| Category | Growth Rate | | --- | --- | | Beauty | High single-digit | | Comparable store sales | 2.7% | | Digital comparable sales | 8.7% | | Net sales | 5.3% | | Comparable sales | 3.8% |