Retailer Target (NYSE:TGT) has raised its earnings outlook for the year on the back of better-than-expected second quarter profits.
The company now expects earnings per share (EPS) for the year to be in the range of US$4.60 to US$4.75, 10 cents higher at both ends than the previously indicated range.
Like-for-like sales (LFL) rose 2.4% in the second quarter, while total sales rose 2.8% to US$17.4bn, in line with market expectations.
Analysts had penciled in a figure of +2.2% for LFL sales, and target indicated the better-than-expected performance was driven by strong performances in its style, baby, kids and wellbeing categories.
Earnings per share virtually doubled to US$1.21 from 61 cents the year before, above the retailer’s guidance range of US$1.04 to US$1.14. The median forecast from analysts that follow the stock was US$1.11.
Shares were up 4.5% in the first hour of trading in a falling market.