Net income was $936 million, or $1.24 per share, in the fourth quarter ended January 30, compared with $609 million, or 81 cents per share, a year earlier. Excluding a lower provision for income taxes, earnings were $1.17 per share. Analysts, on average, were expecting earnings of $1.16 per share, according to Thomson Reuters.

Sales rose 3.7 percent to $19.72 billion. Sales at stores open at least a year, a key gauge of a retailer’s health, rose 0.6 percent. Last year, Target’s quarterly profit fell nearly 41 percent as it cut prices to clear holiday merchandise and lost money in its credit card segment as shoppers fell behind on payments.

Since then, Target has reduced inventory and increased its focus on food and pharmacy items to appeal to frugal shoppers. It is also offering to match competitors’ prices. Target’s results come less than a week after larger rival Wal-Mart Stores Inc reported higher quarterly profit, but said sales at its U.S. discount stores fell during the holiday quarter and traffic declined.

Target shares were down 60 cents at $50.04. Wal-Mart shares were down 23 cents at $53.60.

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