Target shares jump on better-than-expected Q4 comparable sales forecast

Investing.com -- Target (NYSE:TGT) shares jumped around 4% in premarket trading Thursday after the retail giant lifted its forecast for comparable sales for the fourth quarter, beating the average analyst expectations.

The company now anticipates a 1.5% increase in comparable sales, up from a previous outlook of flat growth, while analysts had estimated a 0.18% rise.

Adjusted earnings per share for the quarter remain projected at $1.85 to $2.45, in line with the $2.19 consensus estimate.

For the full year, Target continues to expect adjusted EPS between $8.30 and $8.90, compared with analysts’ expectations of $8.67.

Target said its total sales rose by 2.8% in November and December, with comparable sales up 2% and digital sales growing nearly 9% year-over-year.

Guest traffic increased by approximately 3%, reflecting growth across both stores and digital channels

"Our team delivered continued traffic growth and better-than-expected holiday-season performance, thanks to their focus on serving guests with an inspiring, easy, and joyous shopping experience," said Brian Cornell, chair and CEO of Target.

"With an unmatched combination of quality and value, on-trend assortments and a seamless shopping experience, our team continues to make Target a destination for consumers, both during important seasonal moments like the holidays and in the everyday moments in between."

Alongside new guidance, Target also announced leadership changes. Mark Schindele, executive vice president and chief stores officer, will retire after 25 years with the company. Adrienne Costanzo, senior vice president of store operations, will succeed him as chief stores officer.

Furthermore, Brett Craig, executive vice president and chief information officer, will retire after 15 years. Prat Vemana, currently executive vice president and chief digital and product officer, will assume the role of chief information and product officer following Craig’s departure.