Source: Sharecast
The Minneapolis-based big box retailer said it now expected like-for-like sales to come in 1.5% higher in the fourth quarter, after a 2% jump through November and December.
It had initially forecast fourth-quarter sales would be flat.
Total sales during November and December grew by 2.8%, with both Black Friday and Cyber Monday seeing “record” sales, Target noted.
Guest traffic, meanwhile, rose by nearly 3% over the two holiday months.
However, the update failed to lift the Wall Street stock, which fell 3% in pre-market trading.
Investors were disappointed that Target did not also increase its profit guidance, which it trimmed in November.
Instead the forecast for fourth-quarter adjusted earnings was maintained at between $1.85 and $2.45 per share. Full-year forecasts, for earnings per share of between $8.30 and $8.90, were also left unchanged.
Brian Cornell, chief executive, said Target remained a “destination for consumers, both during important seasonal moments like the holidays and in the everyday moments in between”.