Target forecasts more sales growth after bumper quarter

Target Corp (TGT.N) on Wednesday posted quarterly sales that surged about 23%, raising hopes of booming demand through the year as consumers flock to stores and shop for more than just essentials.

Shares rose 4% after the retailer also forecast growth in comparable sales for the last two quarters of the year, countering Wall Street’s fears of a sales drop, as it keeps pace with surging sales recorded during the pandemic’s peak.

With the reopening of the economy due to vaccinations, Target, like Walmart (WMT.N) and Macy’s (M.N), said shoppers are spending more on apparel and beauty products as they prepare to socialize and travel.

“With vaccinations rolling out across the country and consumers increasingly comfortable venturing out, we’ve seen an enthusiastic return to in-store shopping,” CEO Brian Cornell told analysts.