Target Corp. on Thursday surprised the industry and investors with some good news.
The discounter updated its guidance and said that as a result of improved traffic and sales trends through the first two months of the quarter, it expects to report a modest increase in its second quarter same-store sales. Target previously said it expected a decline.
"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," stated CEO Brian Cornell. “Our team is energized and focused on enhancing and modernizing the Target shopping experience, and our guests are responding."
Cornell said the company's launch of its nursery decor line, Cloud Island, in May was a success. Target will be rolling out four more exclusive brands across home and apparel during the coming months in support of its plan to launch 12 new brands by the end of 2018.
"We are also pleased with initial results of the Twin Cities rollout of Target Restock, providing next-day delivery of a shopping-cart-sized shipment from an assortment of more than 10,000 essential items," Cornell added.
In updating its guidance, Target said it now expects to report second quarter GAAP and adjusted EPS above the high end of its previous guidance range of $0.95 to $1.15.