Nordstrom (JWN) shares surged nearly 8% in after-hours trading after the retail giant reported second-quarter earnings that exceeded analysts’ forecasts. The increase in sales during the crucial Anniversary Sale was a key driver of growth.

Nordstrom shares, traded on the New York Stock Exchange (NYSE), were about 8% higher after market close on Wednesday, reaching $22.79.

The recent stock price of Nordstrom at $22.79, compared to the previous close of $21.14, gives the company a market capitalization of approximately $3.6 billion. The company also raised the lower end of its annual comparable sales growth forecast to a range of 0% to 2%, from a previous forecast of a 1% decline to a 2% rise.

Nordstrom overcame challenges amid reduced demand and inflationary pressures. The focus on high-demand categories, such as women’s apparel, reducing discounts, and emphasizing full-price sales helped improve the company’s performance.