New Delhi, Aug. 19 -- Target shares climbed more than 6% on Wednesday after the US retailer raised its full-year outlook and reported quarterly results that exceeded Wall Street expectations, signalling that the company may finally be emerging from a prolonged sales downturn.

The retailer now expects net sales to rise about 5% in the current fiscal year, which ends in early 2027. The new forecast is one percentage point above its previous guidance. Target also increased its adjusted earnings outlook after second-quarter sales came in ahead of analysts' expectations.

"We're encouraged by the progress made so far and we're also clear-eyed about the important work still ahead," Chief Executive Officer Michael Fiddelke said on a call with r...