Target boosts annual profit outlook as turnaround gains traction

IndustriesAssociated Press

Target is raising its annual profit outlook as the discounter's effort to spruce up fashion and other merchandise are resonating with shoppers.

Continue Reading Below

The rosier forecast comes as the discounter more than tripled its net income in the second quarter.

The company said second-quarter earnings were $753 million, or $1.18 per share for the three month period ended Aug. 1. That compares with $234 million, or 37 cents per share a year ago.

Adjusted earnings were $1.22, above Target's range of $1.04 to $1.14 per share.

Target says revenue at stores open at least a year rose 2.4 percent, in line with expectations.

The results are the latest evidence that the turnaround spearheaded by CEO Brian Cornell, who came on board last August, is gaining traction.