MINNEAPOLIS — Target Corp. saw fiscal 2024 second-quarter earnings jump more than 40% as chairman and chief executive officer Brian Cornell said the mass retailer is back on a growth track — including its first quarterly comparable-sales gain in over a year.

Reported and adjusted net earnings for the quarter ended Aug. 3 swelled nearly 43% to $1.19 billion, equal to $2.57 per share on the common stock, from $835 million, or $1.80 per share, a year earlier, Minneapolis-based Target said. The result bested Wall Street’s top-end estimate of $2.34 in adjusted earnings per share (EPS).

“The strength of our entire team was clearly evident in our financial performance, which came in well above our expectations,” Cornell told analysts in an Aug. 21 conference call. “On the top line, we met our goal of returning to growth but moved well beyond that baseline expectation. More specifically, our Q2 comp sales grew 2% at the very top end of our guidance range. On the bottom line for the quarter, our EPS of $2.57 was well above the high end of guidance, representing growth of more than 42% over last year. Among the drivers of our comp sales, we’re pleased that our second-quarter growth was driven entirely by traffic, reflecting the combined benefits of the multiple guest-focus initiatives we outlined in our financial community meeting back in March.”

Target’s second-quarter revenue totaled $25.45 billion, up 2.7% from $24.77 billion a year ago. Overall comparable sales rose 2% year over year. That marked the first time comp sales hadn’t decreased since flat results in the fiscal 2023 first quarter and the first comp-sales increase since a 0.7% uptick in the fiscal 2022 fourth quarter. Target said the 2024 second-quarter result reflected gains of 0.7% in same-store sales and 8.7% in comparable digital sales.

Operating income climbed almost 37% to $1.64 billion, which Target attributed to sales growth and a 190-basis-point gain in gross margin. Operating income margin grew 160 basis points to 6.4%.

“Consumers have shown remarkable resilience in the face of multiple challenges over the last several years, and they remain resilient today,” Cornell said. “Given the significant headwinds they’ve faced with inflation over the last few years, consumers continue to focus on value. They work hard to manage their household budgets. And while they continue to turn out and shop around holidays and other seasonal moments, many are delaying purchases until the moment of need.

“Against that backdrop, our team continued to focus on providing unbeatable value for our guests. Of course, that starts with a focus on low everyday prices, including our recent price reductions on frequently purchased items.”

He referred to a plan Target announced in May to lower the daily regular prices on about 5,000 popular items. The retailer also is offering personalized deals via the Target Circle loyalty program, which added more than 2 million members in the quarter, and savings via the Target Circle 360 online benefits program and Target Circle credit/debit card.

Traffic rose 3% in the second quarter, with all six core merchandising categories — food and beverages, apparel and accessories, beauty and personal care, household staples, hardlines, and home furnishings and decor — delivering traffic growth.

Rick Gomez, chief commercial officer, said Target saw “notable areas of strength in both discretionary and frequency categories.” Food and beverage sales grew by low single digits and helped drive traffic with hundreds of new summer items in snacking, grilling and entertainment, along with a candy aisle transition that ushered in better-for-you items like low-sugar treats, he said.

For the first half, Target posted net income of $2.13 billion, or $4.60 per share, up over 19% from $1.79 billion, or $3.86 per share, a year ago. Total revenue dipped 0.2% to $49.98 billion, with comp sales down 0.9%. Operating income advanced 19% to $2.93 billion.

Citing the first-half profit performance, Target raised its 2024 earnings outlook to adjusted EPS of $9 to $9.70 from $8.60 to $9.60 previously. However, the company fine-tuned its comp-sales guidance of flat to 2% growth, projecting the result likely will be in the lower half of that range. Target opened 10 new stores in the first half, finishing the period with 1,966 overall, and has more than 60 store remodels underway.

The positive second-quarter report lifted Target’s stock price 17% to around $161 per share as of late morning trading on Aug. 21.

Cornell said Target’s focus is “staying on offense while maintaining overall cautious outlook, a stance has worked well for us over the last few quarters.”