Target Q2 earnings awaited

Investors await Target's fiscal second quarter as store traffic and margins come under pressure.

Target Faces Q2 Earnings Slump as Traffic Decline Deepens

Target is set to report fiscal second quarter results before the market opens on Wednesday. Wall Street expects earnings per share of 2.03 on revenue of 24.93 billion dollars. The Minneapolis based retailer has seen annual sales drift sideways for about four years, and its shares have fallen roughly 60 percent from their 2021 peak.

This year has added to the challenge, with store visits sliding almost every week according to Placer.ai. The stock has declined 22 percent in 2025. In talks with CNBC, customers and former employees say Target has lost some of its distinctive traits, including eye catching displays, well kept stores and attentive service. Higher tariffs have also raised costs, since roughly half of what Target sells is imported. Last week Ulta Beauty and Target announced they will end their partnership that opened Ulta mini shops in about a third of Target stores. The deal, which also integrated Ulta brands into Target’s online store, will end in August 2026.

The quarterly release will test how much Target can lean on price promotions and improved merchandising to win back shoppers. The results could signal whether the retailer can stabilize traffic without compromising value for its customers. A clear and credible plan to rebuild visits and sustain margins would be essential for investor confidence.

Beyond traffic, the Ulta partnership breakup removes a potential traffic driver and highlights the fragility of relying on external partners for footfall. Tariff costs remain a headwind for margins and pricing power, complicating inventory and assortment decisions. The company will need to show a realistic path to growth that balances lower costs, better in store experiences, and selective exploration of new formats or partnerships.

Highlights

The road ahead for Target will test how well it can balance value with a refreshed shopping experience.