Target reported stronger-than-expected holiday sales, driven by record-breaking Black Friday and Cyber Monday performances, prompting an increase in its sales growth forecast for the holiday quarter to 1.

While not robust compared with past holiday seasons, it beat the Minneapolis-based retailer’s guidance of flat sales and is a much better performance than in the August-through-October period. The National Retail Federation had predicted holiday sales would increase between 2.5% and 3.5%.

Target Corp (NYSE:TGT) reported a 2.8% increase in holiday sales during the November and December period. The company saw comparable sales rise 2% and solid sales during the Black Friday and Cyber Monday promotions.

Stocks were on course for a banner day amid signs of progress on inflation. The Dow rose 700 points, and the Nasdaq jumped 2%. Target's Holiday Sales Soar 2%--Black Friday, Cyber Monday, and Taylor Swift Merch Fuel the Rally!

Target raised guidance for a key metric in an update on its holiday sales after achieving records for both Black Friday and Cyber Monday promotional events.

Target raised its fourth-quarter sales forecast, as customer traffic across stores and its website rose and deals attracted holiday shoppers. The discounter said Black Friday and Cyber Monday saw record-high sales.

Target raised its holiday-quarter comparable sales forecast on Thursday, buoyed by robust shopper demand for clothing, toys and beauty products during November and December, but profit margin concerns sent its shares down nearly 3%.

Minneapolis-based Target Corporation reported its quarterly earnings Thursday, showing a slight increase in sales following a holiday boost. Total sales in November and December grew 2.8% — more than in 2023 — according to a Target press release.