Target Q1 sales jump 6.7% as traffic recovers; IEEPA tariff refunds pending, amount unclear

Filed May 29, 2026 · Period ending May 2, 2026 · Compared to 10-Q May 30, 2025 · ~1 min read

Key Changes

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  Supreme Court invalidated IEEPA tariffs in Feb 2026; refund process launched via CAPE system in April. Target began receiving refunds post-quarter but amounts not yet material and ultimate impact cannot be estimated due to process uncertainties and potential appeals.

  MD&A: Tariff Environment verify on EDGAR →
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  Comparable sales grew 5.6% (vs -3.8% prior year) driven by 4.4% traffic increase and stabilizing transaction amounts. Net sales reached $25.4B, up 6.7% from $23.8B decline in Q1 2025, marking operational turnaround.

  MD&A: Sales Performance verify on EDGAR →
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  Adjusted operating income rose 29.1% to $1.1B (excluding prior-year $593M interchange settlement gain); adjusted EPS jumped 31.6% to $1.71. Gross margin expanded 80 bps to 29.0% on lower markdowns and supply chain productivity.

  MD&A: Profitability verify on EDGAR →