Discounts and sales events have remained a significant sales driver, as consumers emerge from a more than two-year stretch of high inflation. It’s unclear how much those deals will cut into Target’s and other retailers’ profit margins, and whether sales will keep improving if promotions fade away.

Target raised guidance for a key metric in an update on its holiday sales after achieving records for both Black Friday and Cyber Monday promotional events.

MINNEAPOLIS — Minneapolis-based Target Corporation reported its quarterly earnings Thursday, showing a slight increase in sales following a holiday boost. Total sales in November and December grew 2.8% — more than in 2023 — according to a Target press release. During Black Friday and Cyber Monday promotions, sales reached record highs.

Target raised its holiday-quarter comparable sales forecast on Thursday, buoyed by robust shopper demand for clothing, toys and beauty products during November and December, but profit margin concerns sent its shares down nearly 3%.

Heavy promotion and sales drew people into Target stores over the holidays, boosting comparable sales by 2% as people bought apparel and toys to put under the tree, the retailer said Thursday. While not robust compared with past holiday seasons,