Target: Turnaround efforts are working

NEW YORK — Target, which is spending billions to remodel stores and strengthen its online business, showed signs Wednesday that the turnaround efforts are starting to win back shoppers.

The retailer reported that a key sales figure rose in the second quarter, its revenue beat Wall Street expectations and its online sales jumped 32 percent. The Minneapolis-based company also boosted its earnings expectations for the year.

“It’s a clear sign that we’re pursuing the right strategy,” CEO Brian Cornell said in a conference call.

The strong results from Target came a week after J.C. Penney, Macy’s and other major retailers reported another quarter of falling sales as more people shop online or at other stores.

Target is spending $7 billion in three years to remodel old stores, open small ones in cities and college towns and offer faster delivery for online orders. It is also adding more clothing and furniture

brands, and said Wednesday that its children’s line Cat & Jack brought in $2 billion in sales since its launch a year ago.

Same-store sales, a key measure of a retailer’s health, rose 1.3 percent in the quarter, beating the 0.3 percent rise analysts expected, according to FactSet. Digital sales made up the bulk of the overall same-store sales increase.

Profit fell 1.2 percent to $672 million, or $1.22 per share, as higher costs cut into sales gains. Earnings, adjusted for one-time gains and costs, came to $1.23 per share, which was 3 cents better than expected, according to a survey of industry analysts by Zacks Investment Research.

Target’s shares rose 2 percent to $55.45 Wednesday morning.