Target Corp.

Target, after solid 3Q, gets cheery about the holidays

With help from a solid back-to-school season, Target breezed past Wall Street expectations for the third quarter and raised a key sales outlook for the critical holiday season.

The cheap-chic retailer still saw declines in store traffic and in its central sales measure, but they were less than expected and better than the previous quarter, and Target raised its annual profit outlook. Its shares rose more than 7 percent.

Target has been trying to get back on track with the second part of its "Expect More, Pay Less" slogan and address the issues that dragged down its business this summer. It's still working on the grocery and electronics departments, which are key...