(Reuters) - Target Corp (NYSE:TGT) on Tuesday said its comparable store sales for November and December rose 3.4 percent, driven by strong traffic growth and online sales, leading it to raise its fourth quarter profit forecast.
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Shares of the Minneapolis-based retailer rose 4 percent in premarket trading and were on track to open at a near one-year high of $69.89 on Tuesday.
The company said it expects fourth-quarter adjusted earnings of $1.30 to $1.40 per share, compared with a previous forecast of $1.05 to $1.25.
Target said the forecast includes a 6 cent to 8 cent benefit from a lower corporate tax rate in January from the recently-enacted federal tax reform legislation.
Analysts on average expect the company to post a profit of $1.22 per share, according to Thomson Reuters I/B/E/S.
The retailer also raised its same-store sales growth forecast for the fourth quarter ending January to 3.4 percent from flat to up two percent earlier.
The company said same-store sales in the two months saw strong gains in all five of its core merchandise categories: home, apparel, food & beverage, hardlines and essentials.
(Reporting by Siddharth Cavale and Vibhuti Sharma in Bengaluru; Editing by Bernard Orr)