Yes, they celebrated the Yuletide in the Old West...
...although technically, this tale's about the contemporary (1940s) West!
Though the series started with a standard late-1800s Old West setting, after creator/writer/illustrator Bill Everett left, new writer, Bea Holmes, and artist L. Kennerly, began inserting contemporary references and technology.
By the time of this tale from Target Comics #12, the series was firmly-set in the present-day.
In fact, in the very next issue, Bull's-Eye Bill was recruited by the Army for special duty to prevent sabotage at Western bases!
Merry Christmas
and
Happy New Year!