12:57 PM EST, 01/16/2025 (MT Newswires) -- Target ( TGT ) held its fourth-quarter earnings forecast steady despite sweetening its comparable sales guidance amid better-than-expected holiday sales performance in what Truist Securities said likely reflects competitive pressures.

The retailer continues to forecast adjusted earnings per share of $1.85 to $2.45 for the holiday quarter. It raised its comparable sales growth projection to 1.5% from a prior expectation that it would be flat. Analysts surveyed by FactSet are expecting adjusted EPS of $2.19 and same store sales of 0.7%.

Shares of Target ( TGT ) fell nearly 2% intraday.

"Our team delivered continued traffic growth and better-than-expected holiday-season performance," Chief Executive Brian Cornell said in a statement.

Total sales were up 2.8% through November and December, equating to a comparable sales increase of 2%. Traffic rose nearly 3%. Discretionary categories led by apparel and toys saw a "meaningful" sales acceleration during the holiday timeframe, compared with third-quarter trends, Target ( TGT ) said.

The company held its full-year non-GAAP EPS forecast steady between $8.30 and $8.90, versus the $8.63 consensus.

Truist Securities said in a note that while discretionary sales reached an "inflection" after recent weakness, the company's "extremely wide EPS guide" shows the brick-and-mortar chain continues to face competitive pressures. Truist reiterated a hold rating while increasing its price target to $134 from $129.

"We suspect that promotions/discounts likely moderated the earnings flow through that should have happened on the better sales results," Scot Ciccarelli, Truist managing director, said in the note. The guidance was roughly in-line with investor expectations but indicate ongoing pressure from Amazon ( AMZN ) and Walmart ( WMT ) , he said.

Target ( TGT ) announced that Chief Stores Officer Mark Schindele will switch to an advisory role on Feb. 2 and retire on March 29. Adrienne Costanzo, senior vice president of store operations, will become the next chief stores officer.

Target ( TGT ) Chief Information Officer Brett Craig will retire next month and be replaced with Chief Digital and Product Officer Prat Vemana.

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