Target has begun to turn the tide, another sign that consumers remain resilient and willing to spend.

After a year of declining sales, Minneapolis-based Target said Wednesday morning that the company has seen sales growth this summer, thanks to customers buying more clothing and other necessities and price cuts that have helped make staples like groceries more affordable.

Like Walmart last week, Target reported that store sales rose in May, June and July. At Target, the increase was 2% compared to the same period last year, when customers were declining because of higher prices and the company was embroiled in controversy over its Pride line.

Target’s earnings also exceeded analysts’ expectations; net profit rose 42.7 percent.

“Our results speak for themselves,” said CEO Brian Cornell in a conference call with the media this week. “We set out to return to growth and our team delivered.”

The turnaround comes at a critical time for Target, which has suffered four consecutive quarters of sales declines while one of its biggest competitors, Walmart, has gained traction among Target’s higher-income customers. Last week, Walmart also beat expectations and raised its financial outlook for the year.

Target’s positive quarter will come as a relief to Wall Street, providing reassurance that U.S. consumers are indeed on the road to recovery and are continuing to spend despite economic challenges. Further evidence of this came last week when the U.S. Commerce Department announced that overall retail sales rose 1% from June to July, the largest increase in over a year and a half.

“Overall, we believe consumers are showing resilience as they continue to seek value and focus on essentials while spending selectively on necessities and responding to innovation and newness,” Joe Feldman, an analyst at Telsey Advisory Group, said in an earnings preview. “The good news is that Target remains focused on its value proposition and strategic initiatives – private label, new stores and remodels, supply chain improvements, digital/drive up, enhanced loyalty program and Target+ marketplace.”