Retail giant Target (TGT:US) encountered difficulties meeting quarterly sales expectations and subsequently revised its full-year forecast downward, highlighting ongoing hurdles in persuading shoppers to buy items beyond essential purchases.

Still, the company’s stock moved higher as the market was obviously looking for a larger guide lower. The company reported earnings per share of $1.80, outperforming the expected $1.39.

Target's revenue amounted to $24.77 billion, slightly lower than the anticipated $25.16 billion. In response to this sales setback, the retailer lowered both its full-year sales and profit projections. 

Target's adjusted guidance now foresees a decline in comparable sales by approximately mid-single digits for the full fiscal year. EPS is projected to range between $7.00 to $8.00, compared to the previous forecast ranging from $7.75 to $8.75.

The stock was also boosted by evident improvements in inventory levels. Investors had already set low expectations for the company, evident in the significant drop in its share price leading up to Wednesday.

Brian Cornell, chair and chief executive of Target Corporation, said, "Our second quarter financial results clearly demonstrate the agility of our team and the resilience of our business model, as we saw better-than-expected profitability in the face of softer-than-expected sales. With the benefit of a much-leaner inventory position than a year ago, the team was able to quickly respond to rapidly-changing topline trends throughout the second quarter, while continuing to focus on the guest experience."

Congressman Ro Khanna was actively buying the dip in Target shares as he reported 8 trades involving the purchase of the stock this month.