Target Corp. (TGT, Financial) gained nearly 4% on Tuesday after reporting strong holiday sales and raising its outlook for the fourth quarter.Â
The retailer now expects earnings per share for the quarter to range from $1.30 to $1.40, up from the previous guidance of $1.05 to $1.25. The new forecast is above analysts' estimates of $1.22 per share.
Same-store sales rose 3.4% during the holiday season and online sales are on track to report their fourth straight year of more than 25% gains. Further, Target increased its same-store sales growth forecast for the fourth quarter to 3.4%.Â
The company has made substantial efforts to boost sales, investing in its online business and hiring more employees, as well as remodeling stores and opening small-format stores in an attempt to reach more customers.
"Target's brick-and-mortar customers are growing in their affinity to the Target online interface, pricing on hot products in the fourth quarter and the ability to deliver in time," Jim Fosina, CEO of Fosina Marketing Group, said.
On the other hand, shares of Urban Outfitters Inc. (URBN, Financial) fell after the company announced that despite witnessing increases in holiday sales, they were below expectations.
For November and December, total net sales increased 3.6% from the same period last year. Further, comparable retail segment net sales increased 2% due to strong double-digit growth in the direct-to-consumer channel. By brand, net sales increased 5% at Free People, 2% at the Anthropologie Group and 1% at Urban Outfitters.
Disclosure: The author holds no positions in any stocks mentioned.
