Lower prices paid off for Target

In what has been a bit of a gloomy quarter for retail, Target has reason to celebrate. 

Target reported earnings on Wednesday that beat out Wall Street expectations. It reported 2% growth in same-store sales, marking the first time that key indicator was in the green in over a year.

Investors have responded well, sending its share price up more than 15% in early trading. If the stock were to close at that level, it would be the company's fourth-best day on record, according to FactSet.

This success comes after Target said in the spring that it would lower prices on 5,000 consumers' staples, ranging from food and beverages to diapers. At a time when consumer pullback and focus on value is at the center of earnings calls, that strategy appears to have hit the bullseye.