Target soared as improved footfall saw sales ahead of expectations

Target Corp (NYSE:TGT) shares were up strongly on Wednesday, gaining 12.3% to $160.71, after its second-quarter beat Wall Street forecasts thanks to its first rise in footfall for some time.

Revenue for the quarter totaled $25.45 billion, beating the $25.19 billion estimate penciled in by market analysts.

Net income was reported at $1.19 billion, which on a per share basis was $2.57 – ahead of the $2.18 consensus estimate.

Target highlighted a 2% improvement in comparable sales, driven by a 3% increase in-store traffic which was its first increase in footfall in over a year

In digital, Target said it had seen significant growth with sales up 8.7%, particularly in same-day delivery services which enjoyed ‘double-digit’ percentage growth.

Target upgraded its full-year earnings guidance, now forecasting adjusted earnings per share between $9.00 and $9.70, up from the previous range of $8.60 to $9.60.

Nonetheless, it stayed cautious for the rest of the year. It noted that growing full-year comparable sales if appropriate, it now believes it will more likely be “in the lower half of the range”.

“Looking ahead, even as we maintain the measured outlook that has served us well, we are focused on building on this positive momentum by executing our strategy and providing the unique combination of newness and value that consumers can only find at Target,” chief executive Brian Cornell said.