MINNEAPOLIS — Target Corp.’s sales are on the rebound after falling for about a year.

The Minneapolis-based retailer revised its second-quarter guidance on Thursday, saying that traffic and sales had improved in May and June. So the company is now expecting a “modest increase” in comparable sales in the May-to-July quarter, a reversal from the single-digit decline it initially projected.

The company’s shares rose 5 percent following the news, which comes during what has been a tough stretch for the retail industry. Other retailers’ stocks followed suit.

The better-than-expected performance was not due to one category or product but instead was across the board, said Target spokesman Katie Boylan.

“We’re seeing across the country — coast to coast — the business is doing well,” she said. “So it’s encouraging that it’s not isolated. We’re seeing it over time, across geographies and across the assortment.”

She added that the company is already seeing some of the benefits of its new strategic priorities executives laid out in February. Target is investing $7 billion into its business over the next three years to remodel 600 stores, including 110 this year; refresh its product lineup with a dozen new brands; and upgrade its technology and supply chain. The retailer also is taking a hit to its margins to lower prices.

Still, some analysts were cautious about the more upbeat forecast.

Chuck Grom, an analyst for Gordon Haskett, said in a research note that while the revised guidance was “encouraging,” it did not necessarily portend a major shift in momentum. Target’s original projection for lower sales just may have been too conservative, he said.

Oliver Chen, an analyst with Cowen & Co., said in a research note that his firm continues to favor Wal-Mart, which it sees as better-positioned to battle Amazon with some of its aggressive moves in e-commerce and pricing. But he said he’s becoming more positive on Target, especially given its improved sales and traffic.

“We like this momentum, but we do continue to see (Target) as a work in progress,” he said.

In a statement, CEO Brian Cornell said, “Target’s recent progress reinforces our confidence and commitment to our strategy as we build an even better Target for tomorrow.”

The improved performance, he added, comes despite “continued challenges in the competitive environment.”

Cornell pointed to the May launch of a new nursery decor line, Cloud Island, as a success. He noted that four more new brands in home and apparel will hit the stores this fall.

Target plans to report its full second-quarter results on Aug. 16.