Shares in Target Corporation (NYSE:TGT) jumped more than 5% in premarket trading on Thursday after a better-than-anticipated update reassured investors previously rocked by Amazon’s tilt for Whole Foods.
Store-first retailers like Target had been hit hard by the threat inherent in Amazon’s bold move for the physical grocer, but, in a statement, Target struck an upbeat tone.
“We’ve seen additional, broad-based improvement in traffic and category sales trends in the second quarter, despite continued challenges in the competitive environment,” said Brian Cornell, Target chief executive.
Target upgraded its guidance for the second quarter of the financial, triggered by trends seen in the first two months of the period.
Earnings (both GAAP and adjusted EPS) are now anticipated above the high-end of the retailer’s previous guidance range, which was 95 cents to US$1.15.
In New York, Target shares were up US$2.83 or 5.56% changing hands at US$53.70 ahead of Thursday’s opening bell.