James Lee on gross margin
From Target Corp ($TGT) Q2 2026 Earnings Call · · Castify Earnings Call
“Our second quarter gross margin rate was a percentage point lower than a year ago. This decline was primarily the result of about 210 basis points of pressure within merchandising reflecting inventory adjustment costs related to the slowdown in our first quarter sales combined with a tariff related pressures including purchase order cancellation costs.”
On , James Lee, Executive VP & CFO at Target Corporation, spoke about gross margin during Target Corp ($TGT) Q2 2026 Earnings Call on Castify Earnings Call.
About James Lee
On Target's Q1 2026 earnings call, Jim Lee stated that the company is planning for a full-year net sales increase centered around 4%, which he described as two percentage points stronger than the prior range. He noted that the company expects to end the year near the high end of its profit range, while maintaining a cautious outlook due to the amount of the year remaining. Lee said the company plans to request a small increase in the quarterly dividend from the board and, assuming continued business performance, may have capacity for share repurchases later in the year, with the pace governed by the company's outlook and goal of maintaining its credit ratings. Lee characterized the company's approach as "writing a new chapter for Target" through disciplined choices and a clear articulation of its role in retail. He described early signs that the company's plans are resonating with customers, while also emphasizing caution about the near-term operating environment due to consumer headwinds and dips in sentiment. Lee stated that the company is focused on delivering consistent growth and investing in the business, team, and communities, and that the first quarter represented a step toward long-term growth goals.