Target's Moving Bullseye: Updated Guidance, New Brands And CEO Confidence Boost Stock

Shares of Target Corporation TGT gained 6 percent early Thursday morning after investors were treated to encouraging news from the struggling retailer. Not including any premarket gains, the stock is still lower by around 30 percent since the start of 2017 and has slumped 12 percent over the past five years.

Target said that it benefited from better-than-expected traffic, sales and comparable sales in the fiscal second quarter. As such, the company now expects its second-quarter earnings per share to come in above the high-end of its prior guidance range of $0.95 to $1.15.

Target's second-quarter results are scheduled to be released on Aug. 16.

The retailer cited recent success in new brand launches, including Cloud Island in May. Looking to capitalize on the momentum, the company will be introducing four more new exclusive brands in home and apparel over the next few months with the goal of launching 12 new brands by the end of 2018.

Target also highlighted initial success in its next-day delivery service called Target Restock, which promises quick delivery of more than 10,000 essential items.

"Target's recent progress reinforces our confidence and commitment to our strategy as we build an even better Target for tomorrow," said Brian Cornell, chairman and CEO of Target.

At time of publication, shares of Target were up roughly 3 percent on the day.

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