Target is setting up shop in the heart of Manhattan.
The big-box retailer has announced plans to open a new small-format store in New York’s Times Square, located on 42nd Street between 7th and 8th Avenues. It will span about 33,000 square feet, compared with the approximately 135,000-square-foot size of traditional Target stores.
With an expected opening by 2022, the outpost will be Target’s 10th small-format store in the borough — a priority growth market for the Minneapolis-based firm. It has already opened six such stores — in Tribeca, the East Village, Herald Square, the Lower East Side, Kips Bay and the Upper East Side. Other planned openings will be at Columbus Circle, Washington Heights and Hell’s Kitchen.
Over the last few years, Target has added around 100 small-format stores across the country at a time when many competitors are shrinking their physical footprints. Analysts have been bullish on the chain, which released two weeks ago third-quarter earnings that crushed expectations.
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For the period Nov. 2, Target logged adjusted earnings per share of $1.36 — a 24.9% gain from the same period in 2018 and much better than analysts’ bets of $1.19. Profits soared 14.8% to $714 million, while revenues for the quarter climbed 4.7% to $18.67 billion, topping forecasts of $18.49 billion.
Same-store sales jumped 4.5% on top of last year’s 5.1% — a figure the company pointed out has increased nearly 10% over the last two years. The company also upgraded its guidance for adjusted earnings per share of $6.25 to $6.45, compared with the previous range of $5.90 to $6.20.
“Our third-quarter results are further proof of the durability of our strategy, as we’re seeing industry-leading strength across multiple metrics, from the top line to the bottom line,” added chairman and CEO Brian Cornell.
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