Target posts 5.3% Q2 sales gain as holiday turnaround begins
Target reported Q2 net sales up 5.3% year over year to $26.5 billion, with comparable sales rising 3.8% in the second quarter of fiscal 2026. This follows a 2025 holiday quarter in which net sales fell 1.5% and comparable sales dropped 3.9%.
In September, Target cut prices on apparel and home merchandise to attract value‑conscious shoppers. The retailer also expanded its online marketplace and revived its Beauty Studio experience after ending the Ulta partnership.
“For the holiday season, Target’s ability to combine value with inspiration — especially in an environment where price is important to consumers — will be something to nail during the holiday season,” Katherine Black, partner at Kearney leading food, drug and mass market retail said.
Target entered the 2025 holiday quarter after consecutive sales declines and faced staffing and store‑order challenges. Saunders said Target had a solid gift assortment and private‑label holiday food innovations, but described them as drops in an otherwise insipid ocean.
What we know
Q2 net sales grew 5.3% year over year to $26.5 billion and comparable sales jumped 3.8%.
The holiday period results weren’t much better, with Target’s Q4 net sales falling 1.5% and comps declining 3.9%.
The company has already tried to master that balance, announcing a new set of price reductions in September on apparel and home merchandise — two product categories that Target has seen slower turnaround progress with.