Target has revealed it has received almost $1bn (£733.9m) in tariff refunds from the US government which boosted the retailer’s latest profits.

The American chain said it received a $994 million pre-tax reimbursement, which resulted in its second quarter operating income doubling to $2.6bn from $1.3bn last year.

When asked how Target would use tariff refunds, chief financial officer Jim Lee did not provide details but added: “We have and will continue to invest in price.”