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Target Raises FY Forecast on Strong Traffic

Wall Street Journal US Business •
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Target has again lifted its fiscal‑year forecast, signaling that the turnaround strategy under CEO Michael Fiddelke is gaining traction with shoppers.

The retailer is refreshing its assortment, cutting prices on select items and reconfiguring store layouts in a sweeping plan designed to reverse years of weak sales. Retailers have also added fresh private‑label lines and expanded curbside pickup options to meet evolving consumer preferences.

The plan, launched earlier this year, has already begun to pay off. In the second quarter Target recorded its highest volume of in‑store transitions in a decade, while comparable sales, which measure stores and digital channels operating for at least 12 months, rose 3.8 % on increased traffic. Digital sales grew 12% year‑over‑year, reflecting a stronger online presence.

Target said the traffic‑driven growth is encouraging but also highlighted the work still ahead. “Seeing our growth fueled by traffic is especially encouraging,” Fiddelke told reporters on a call, adding that the company remains focused on sustaining momentum.

With the updated outlook, Target continues to focus on delivering value and a seamless customer experience as it works to rebuild its brand and restore sales growth for the remainder of the fiscal year.