New York (CNN Business) Target reported lackluster sales during the critical holiday stretch, raising some concerns about whether the retailer can keep growing as it faces rising competition.

But strong December sales at Costco show that not all the traditional retailers suffered during the holidays.

. That was below the company's guidance for the period and well short of the 5.7% growth it had a year earlier. Target has been one of the few traditional brick-and-mortar retailers thriving against Amazon. However, it reported a sales gain of only 1.4% in November and December at stores open at least a year, a key measure of the retailer's healthThat was below the company's guidance for the period and well short of the 5.7% growth it had a year earlier.

Target TGT While the company said it should still be able to hit its profit target for the fiscal fourth quarter, the sales report drove down shares of6% during trading early Wednesday.

"Holiday sales did not meet our expectations," Target CEO Brian Cornell said. The company "faced challenges" in electronics, toys and home goods, he said. Together, those divisions make up around one-third of the company's holiday sales. Target did enjoy a 19% bump in online sales.

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