Target boosted its fiscal-year outlook again as the retailer's turnaround takes shape and draws in customers.

On the heels of a positive quarter, the company said it now expects sales growth of about 5% this fiscal year, raising its guidance for the second time this year.

Target also bumped up its full-year earnings outlook to a range of $9.90 to $10.90 a share, which includes a benefit of $1.65 from tariff refunds in the second quarter. The company previously guided for earnings of $7.50 to $8.50 a share.

The updated forecast comes as Target continues to work through its turnaround strategy under Chief Executive Michael Fiddelke, who took the helm earlier this year. The retailer has been refreshing its product assortment, lowering prices on some items and rejiggering its store layouts as part of a sweeping plan aimed at reversing years of sluggish quarterly sales.

Target's second-quarter results are further proof that its strategy is resonating with customers, Fiddelke said. The company had reported its strongest quarterly sales gain in years in the prior three-month period.

Comparable sales, which tracks stores and digital channels operating for at least 12 months, ticked up 3.8% due to increased traffic. FactSet analysts expected growth of 2.4%.

"Seeing our growth fueled by traffic is especially encouraging," Fiddelke said on a call with reporters. "We are also clear eyed about the important work still ahead," he added.

Target had net sales growth across all six of its core merchandising categories, with particularly strong gains for its hardlines products, which include toys and electronics. The company's efforts to differentiate its products further are starting to bear fruit, executives said on the call. Food and beverage sales increased as the company added more space in its stores for fresh food, snacks and bakery items.

However, sales of apparel and homegoods barely grew. These are areas where Target needs to improve, Fiddelke said, and that effort will be a multi-year journey. Target is going category-by-category and redesigning, and in some cases cutting items.

Target's non-merchandise sales similarly rose on growth for its digital-advertising business, membership program and Target+ marketplace.

The company's second-quarter sales rose 5.3%, to $26.54 billion, topping analysts' forecast of $26.13 billion.

Net income came in at $1.88 billion, or $4.11 a share, compared with $935 million, or $2.05 a share, a year earlier.

Adjusted earnings per share also were $4.11, above analyst estimates of $2.34.

The earnings-per-share figures from the recent quarter include the tariff refunds.