Shares of Target (NYSE: TGT) are up 1.7% in early trading Wednesday after the retailer crushed analysts' estimates for the first quarter.

Target reported a 23% surge in Q1 sales as the U.S. retailer’s investments in exclusive brands and services reinforced customer loyalty and encouraged demand. Target also highlighted vaccination programs, economic recovery and busier social calendars as other driving factors.

As a result of strong Q1 results, Target issued Q2 guidance that was far above analysts’ estimates. The retail company reported adjusted earnings per share of $3.69, compared to analysts’ estimates of $2.25. Revenue came in at $24.20 billion versus the expected $21.81 billion.

Target said net income rose to $2.1 billion, or $4.17 per share, from $284 million, or 56 cents per share, a year ago. The company reported earnings per share of $3.69, excluding items, compared to the expected $2.25 per share.

Target’s total revenue climbed by 23% to $24.2 billion compared to the year-ago period, more than analysts’ expectations of $21.81 billion.

"Our performance in the first quarter was outstanding on every measure, and showcased the power of putting our stores at the center of our strategy. Store comp sales grew 18.0 percent in the quarter, even as they also fulfilled more than three quarters of Target's digital sales - including more than 90-percent growth of our same-day services. Importantly, market-share gains of more than $1 billion in the first quarter, on top of $1 billion in share gains a year ago, demonstrate Target's continued relevance with our guests, even as they have many more shopping options compared with a year ago," said Brian Cornell, chairman and chief executive officer of Target Corporation.

Stifel analyst Mark Astrachan says results came in “above heightened expectations” as he expects the company to continue outperforming. He has a $230.00 per share price target on the Buy-rated TGT.

“While consistent with F1Q upside from large retail peers, we think above- consensus F2H guidance should drive shareprice outperformance, particularly given the magnitude of anticipated favorable revisions consensus comp and EPS. Comp growth above 20% for the fourth consecutive quarter indicates share gains across many categories are continuing, in part reflecting strong digital growth led by same-day services,” the analyst said in a note on TGT.

BMO analyst Kelly Bania is impressed by “another very strong quarter” from TGT, driven by “a favorable consumer backdrop, but also strong market share gains.” The analyst has a $225.00 per share price target on the stock.

“TGT provided more specific guidance for the remainder of the year that is well ahead of our model/Consensus,” Bania highlighted in a note.

“We believe TGT's market share trends in discretionary categories are positioned to accelerate as discretionary competitors pull back on stores and investments and the company should continue to benefit from its investments in same-day services.”