Target (TGT) is taking aim at revitalizing its brand, and early results suggest it may be hitting the bull's eye.
The retailer boosted its guidance for the second quarter after its campaign to revitalize the brand pushed sales higher and boosted customer traffic.
The Minneapolis discounter said Thursday that it expects a modest increase in sales at existing stores, reversing four consecutive quarters of declines for that measure.
The company had said in May that it expected a decline in the low single digits for the quarter.
It also said it expects second-quarter profits to be at the high end of its previous per-share guidance of between 95 cents and $1.15 per share.
It's an encouraging sign that efforts to increase the range of exclusive brands under its roof, push an everyday, low-price message and improve customers' experience online and in stores, are working. The company still faces stiff competition from Walmart and Amazon.com.
"Our team is energized and focused on enhancing and modernizing the Target shopping experience, and our guests are responding," said CEO Brian Cornell in a company release.
Cornell said that the May launch of a brand called Cloud Island, which offers nursery décor has been a success. The company is also set to launch four more exclusive brands in home and clothing in the next few months, part of bigger plan to offer 12 new exclusive store brands by the end of 2018.
Target releases its second-quarter financial results next month.
Shares rose 6 percent before the opening bell and pulled the shares of other retailers higher as well.
The retail sector was the biggest gainer in the hours leading up to the open of trading, with Macy's, Kohl's, and Walmart all pushing higher.