Target says sales increase following a yearlong slump

Target Corp.’s sales are on the rebound after falling for about a year.

The Minneapolis-based retailer revised its second-quarter guidance Thursday morning, saying that traffic and sales had improved in the first two months of the current period. That means the company now is expecting a modest increase in comparable sales. It also said it expects its earnings per share to be above the high end of its previous guidance because of a tax benefit from its global sourcing operations.

The company’s shares rose 3 percent, along with those of some other retailers, following what was seen as a cheery report amid an otherwise gloomy retail landscape.

Katie Boylan, a Target spokeswoman, said the better performance was not due to one category but was seen across the board and in different geographies.

“We’re seeing across the country — coast to coast — the business is doing well,” she said. “So it’s encouraging that it’s not isolated. We’re seeing it over time, across geographies and across the assortment.”

In a statement, Target CEO Brian Cornell said the retailer’s launch of a new nursery decor line, Cloud Island, in May was a success and will be followed by four more new exclusive brands in home and apparel in the coming months as part of a two-year push to introduce a dozen new brands.

“Target’s recent progress reinforces our confidence and commitment to our strategy as we build an even better Target for tomorrow,” he said.

Cornell also said the company was “pleased” with the initial results of rollout in the Twin Cities of Target Restock, a next-day delivery service of household essentials it recently began testing that could rival Amazon’s Prime Pantry.

Target plans to report its full second quarter results Aug. 16.

Its sales have declined in the previous four quarters as it has struggled to keep up with the shift to online shopping and amid fierce competition from Amazon and Walmart. Its grocery department has also seen softer sales.

Executives had told investors earlier this year not to expect sales to turn positive until possibly next year as key parts of the company’s strategy to remodel hundreds of stores, launch new brands and overhaul its supply chain would take time to impact sales.