Overview
- Target raised its quarterly dividend 1.8% to $1.16 per share, extending a 55‑year streak of annual increases.
- Trailing‑12‑month free cash flow jumped about 51%, and the company paid roughly 46% of that cash flow as dividends in the past year.
- In the second quarter Target reported net sales growth of about 5% and comparable sales up 3.8%, and management is guiding full‑year sales growth near 5%.
- A one‑time tariff refund of roughly $994 million materially boosted recent gross margins and earnings, leaving analysts to weigh how much of the profit lift is durable.
- CEO Michael Fiddelke’s store resets and growth in higher‑margin services have improved traffic, but weak home and apparel sales, heavy reinvestment and a richer valuation pose risks to sustaining margin gains.