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 anticipates 1.5% growth in Q4 comparable sales and maintains its EPS guidance of between $1.85 and $2.45.

Retail sales gained 0.4% in December from November, slightly below projections for a 0.5% increase, according to FactSet.