The upbeat outlook from the U.S. retailer follows better-than-expected sales in the holiday quarter as stimulus checks and strong online demand eased the blow from the health crisis.
The company expects sales between $19.75 billion and $20.75 billion for the full year, compared with analysts' estimates of $20.13 billion, according to IBES data from Refinitiv.
Retailers are tipped to benefit from another wave of stimulus-driven consumer spending in the coming months as the U.S. Congress considers the Biden administration's support plan that includes sending a $1,400 check to households.
Same-store sales on an owned basis fell 17% in the fourth quarter ended Jan. 30, compared with Wall Street estimates of a 16.60% fall, according to IBES data from Refinitiv.
Online sales jumped 21% in the fourth quarter, driven by efforts to reduce delivery times and the use of stores to fulfill orders made on its website and app.
Net sales fell to $6.78 billion from $8.34 billion in the fourth quarter, but beat estimates of $6.50 billion.
Excluding one-time items, the company reported profit of 80 cents per share.
(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Sriraj Kalluvila)