Target Corp. (NYSE: TGT) shares rose more than 3 percent on Thursday after the company boost its second-quarter earnings guidance.
The retailer said it now expects a modest increase in its second quarter comparable sales. The company previously had projected it would be negative. In addition, Target expects second quarter adjusted earnings to be above the high end of its previous guidance range of $0.95 to $1.15.
“Target’s recent progress reinforces our confidence and commitment to our strategy as we build an even better Target for tomorrow. Following better-than-expected results in the first quarter, we’ve seen additional, broad-based improvement in traffic and category sales trends in the second quarter, despite continued challenges in the competitive environment” Brian Cornell, chairman and CEO of Target, said in a statement.
“The launch of Cloud Island in May was a success, and our team will be rolling out four more exclusive brands across Home and Apparel in the next few months, in support of our plan to launch 12 new brands by the end of 2018.”
Target’s shares rose as much as 3.56 percent to $52.69 in the early trading in New York.
Traditional retail companies have been under pressure this year as they are facing huge competition from e-commerce company like Amazon. Target’s shares have been down more than 26 percent year-to-date.
Target’s strong guidance also sent other retailers higher on Thursday. Wal-Mart was up 1.39 percent and Macy’s rose as much as 3.18 percent.