Target (NYSE: TGT) reported its third-quarter earnings Wednesday, which topped analysts’ expectations as the retailer profited off of the ongoing pandemic. Shares rose 5% Wednesday morning and reached a 52-week high of USD172.12.
The American retail corporation revealed it has had gains in various categories including apparel and beauty. Throughout the last year, it said it had achieved USD6 Billion in market share, as well as USD1 Billion in share gains during the most recent quarter.
Target added 18 new stores in October and another 12 since the start of the year. According to officials, the company expects to open approximately 40 locations per year. It currently has 1,897 stores nationwide.
“The key to fulfillment capacity is the store asset itself,” Chief Operating Officer John Mulligan said during the call.
Going forward, the company is steering away from bigger retail stores that it has always leased. All but one of the 30 new locations were considered small-format.
“We remain really bullish on the small-format stores,” Mulligan added.
In its third-quarter report, Target highlighted earnings of USD2.79 per share, compared to the expected USD1.60 a share. Revenue amounted to USD22.63 Billion compared to analysts anticipated USD20.93 Billion. Furthermore, same-store sales rose 20.7%, higher than the expected 11.2%.
The company has begun early holiday sales and CEO Brian Cornell says customers have already started shopping for presents, “but they still have a very long shopping list that they have to fulfill over the next few weeks.”
“We expect them to be decorating their homes,” he said. “We expect a lot of gift giving as many families will be shipping gifts across the country and be celebrating very differently than they had in the past.”