Investing.com - Target (NYSE:TGT) shares shot up in pre-market trade on Thursday, after the retail giant boosted its guidance for the second-quarter thanks to higher than expected same-store sales.
Target now expects adjusted earnings per share of $0.95 to $1.15 for the three months ended June 30, above the high end of its previous estimate of $1.06.
The retailer said it saw a "modest increase" in second-quarter same-store sales, and that traffic and sales trend improved through the first two months of the quarter.
"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," said Chief Executive Brian Cornell.
Target shares rallied $2.63, or around 5.2%, in pre-market trade to $53.50 from a closing price of $50.87 on Wednesday.