Target saw its shares surge by more than 11% on Wednesday after the retailer shared a better-than-expected earnings report for the fiscal second quarter and raised its full-year profit guidance.
Target’s sales grew by 3% in Q2, marking the first growth since the fiscal fourth quarter of 2022. The company reported $2.57 in earnings per share compared to the $2.18 expected by analysts, while $25.45 billion in revenue, a 2.7% year-over-year increase, beat the estimates of $25.21 billion.
After a sluggish start to the year, Target managed to attract more customers to its stores with price cuts and the introduction of new merchandise. However, despite improvements, the company expects its full-year comparable sales to come at the lower end of the flat to 2% range.
On the other hand, the retailer is expecting its profit to come at a higher level than previously predicted. It now forecasts to have $9 to $9.70 in adjusted earnings per share for the full year compared to previous predictions of $8.60 and $9.60.
The earnings beat and improvement in generating profit have helped Target’s stock to soar by 11.20% and close at $159.25 per share on Wednesday. This is the highest the stock has been since May.