Target and Kohl’s posted sharp gains in profit and revenue in Q2 ended June 30 amid continued expansion of private label and licensed brands and a toy business that’s benefitting from Toys R Us’ demise.

Target posted a 19% gain in Q2 net income to $799 million as revenue rose 6.9% to $17.8 billion on a 6.4% rise (4.9% in-store and 1.5% online) in comparable-store sales, the chain’s largest increase since 2005. Target’s store customer traffic also rose 6.4%. And e-commerce sales increased 41% to account for 5.6% of total sales, up from 4.2% a year earlier. Kohl’s also posted a 40% increase in net income to $292 million as sales jumped 4% to $4.57 billion on a 3.1% gain in same-store sales.

Both retailers expanded their offerings of toys and exclusive/private label products.

Target launched four new private label brands – Original Use (young men’s tee-shirts, jeans, shirts and hats), Heydey (electronics), Made by Design (kitchenware and furniture) and Wild Fable (young women’s apparel) – during the quarter. It also is readying a 350-item DTR (bedding, toys, beach and pet products) with Disney to mark Mickey Mouse’s 90th anniversary.

Meanwhile, Kohl’s is readying the launch this fall of a ready-to-wear PopSugar women’s apparel collection under license from the PopSugar media company. It also is readying Nine West-branded apparel, hand bags and footwear for introduction in 2019 via a DTR license with Authentic Brands Group (ABG). Kohl’s propriety brands (including licenses with Vera Wang, Lauren Conrad, Elle and others) now account for 66% of its women’s apparel business, CEO Michelle Gass said. The deal is the among the first ABG has struck since buying the Nine West and Bandolino brands for $340 million at a bankruptcy auction in June.

Target posted a double-digit percentage same-store sales gain in toys and baby products as it benefitted from the departure of Toys R Us and affiliate Babies R Us, Target executives told analysts. “We are picking up market share in those categories and key geographic areas and will continue to do so in 2019 and beyond,” Target CEO Brian Cornell said.

Kohl’s also is devoting more shelf space to toys and will add Lego and ThirtySixty Group’s FAO Schwarz products for the holiday season. The FAO Schwarz brand previously was part of Toys R Us’ merchandise mix. ThirtySixty bought the brand from Toys R Us in 2016 and expects to open a new FAO Schwarz store in New York’s Rockefeller Plaza In November.

“We’re not the biggest player in toy and we have a bit of curated assortment” but adding Lego and FAO Schwarz “will give a real boost to the business and we are well-positioned,” Gass said.

In light of its strong sales in Q2, Kohl’s increased its forecast for annual same-store sales increase to 2% from 0.2-0.5% and earnings to $5.15-$5.55 from $5.05-$5.50 in May.