Target Corporation, the well-known retail giant, experienced a significant jump in its shares on Wednesday after the company announced its second-quarter earnings, surpassing expectations. The positive performance was driven by a return to growth in comparable store sales, with both in-store and digital channels recording increased traffic compared to the previous year.

According to Visible Alpha estimates, Target posted second-quarter revenue of $25.42 billion, representing a 2.6% year-over-year growth and exceeding analysts' projections. The company also reported a net income of $1.19 billion, a remarkable 40% surge from the second quarter of fiscal 2023.

After witnessing a decline in comparable store sales in the first quarter, Target successfully reversed the trend in the second quarter with a 2% year-over-year growth. The company attributed this success to a 3% increase in in-store traffic and an impressive 8.7% surge in digital sales, which mainly stemmed from the popularity of Target's same-day services such as curbside pickup and same-day shipping offered through its revamped membership program.

Target also witnessed a meaningful improvement in discretionary sales trends during the quarter, particularly in categories like apparel and beauty. This recovery in consumer spending comes amidst a challenging retail landscape, where inflation pushed many Americans to prioritize essential purchases over discretionary items.

The company now expects comparable sales to grow between flat and 2% in the third quarter, along with estimated earnings per share (EPS) of $2.10 to $2.40. Analysts, on the other hand, project EPS to be around $2.21 for the same period. Looking ahead, Target anticipates full-year comparable sales to be on the lower end of their initial projection of flat to 2% growth. However, the company raised its EPS projection range to $9.00 to $9.70, compared to the previously estimated range of $8.60 to $9.60.

Following the release of this impressive news, Target shares soared over 13% to $164.50 in pre-market trading on Wednesday. This rally reflects the market's positive response to the company's strong second-quarter results and heightened full-year projections.

Target's robust performance not only underscores the resilience of the retail industry but also demonstrates the company's ability to adapt and meet consumer demands in a fast-changing market. With a promising outlook for the remainder of the year, Target is well-positioned to continue its growth trajectory and maintain its status as a leading player in the retail sector.