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Target shares jump as Q2 revenue and comps beat expectations
Target reported Q2 revenue growth of 5.4% to more than $26.5 billion, with same-store sales up 3.8% as traffic rose 3.6%.
Target posted better-than-expected Q2 results, with revenue rising 5.4% to over $26.5 billion and same-store sales, or comps, increasing 3.8%. The company attributed the comp strength to improving store traffic, which grew 3.6%, alongside an inventory focus and moderated pricing resonating with shoppers, according to MarketBeat Ratings.
The outlet also highlighted that mix and margin strength supported the quarter, noting that prices were down across a wide range of products. MarketBeat Ratings said management indicated strength was broad-based across channels, demographics, and categories.
Target’s adjusted earnings were $4.11, including $1.65 in IEEPA refunds. Even after that boost, MarketBeat Ratings said the company outperformed consensus by $1.77, and management raised guidance, lifting targets for revenue, margins, and earnings above consensus figures.
MarketBeat Ratings added that the earnings strength is reflected in Target’s balance sheet, pointing to greater capacity for capital return. The outlet further argued that with an uptrend already underway, the stock could be positioned to test levels near $180, including a widely watched $160 resistance level.