The TJX Companies, Inc. (NYSE: TJX)
Markets reacted positively on Tuesday after discount retailer TJX revealed second quarter sales that were above expectations.
During the quarter, the Marshalls and T.J. Maxx parent company attracted higher numbers of younger customers due to its deep discounts.
TJX also boosted its earnings and same-store sales growth guidance, sending its shares up 4.56% to $105.66 in the stock market early Tuesday.
The Framingham, Massachusetts-based retailer has survived through a period of uncertainty for major US brick and mortar retailers.
The company sells its fashion at significantly lower prices than specialty and department store regular prices.
In addition, it has an aggressive inventory management that changes its assortments quickly, enabling shoppers to buy what they like when they see it.
TJX Earnings & Outlook
The company came out with a net income of $739.6 million, or $1.17 per share, compared with $553.0 million, or $0.85 per share in the year-ago quarter.
Excluding special items, earnings were $0.99 per share, while net sales jumped 11.6% to $9.33 billion.
Same-store sales climbed 6% during the quarter, handily surpassing Thompson Reuters estimate of 2.2%.
Marmaxx grew 7%, HomeGoods climbed 3%, TJX International increased by 4%, while TJX Canada was up 6%.
Analysts were for adjusted earnings of $1.05 per share on net sales of $8.99 billion.
Looking ahead, TJX hopes to report earnings of between $1.18 to $1.20 per share, and adjusted per-share earnings in the range of $1.00 to $1.02.
TJX CEO Comments
TJX president and chief executive officer Ernie Herrman said, “We are extremely pleased with our second quarter results. Both our consolidated comp store sales growth of 6% and earnings per share of $1.17 significantly exceeded our expectations. Marmaxx, our largest division, delivered a very strong 7% comparable store sales increase. Customer traffic was once again the primary driver of our comp store sales increases at all of our divisions as we continue to reach a very wide customer demographic. Further, this marks the 16th straight quarter of customer traffic increases for TJX and Marmaxx.”
Herrman continued, “We have been attracting new customers to all our divisions, a significant share of whom are younger customers. This is great for our business today and for the future. Our teams delivered sharp execution of our off-price fundamentals across the Company, and customers responded to our great brands, fashions, and eclectic selections at excellent values. We were especially pleased with the robust performance of our apparel business. With our strong second quarter performance, we are raising our guidance for full-year earnings per share and comparable store sales growth.”
The TJX Companies, Inc. Company Profile
The TJX Companies, Inc. engages in the retail of off-price apparel and home fashion products. It operates through the following segments: Marmaxx, HomeGoods, TJX Canada, and TJX Europe.
The Marmaxx segment sells family apparel including footwear and accessories; and home fashions including home basics, accent furniture, lamps, rugs, wall décor, decorative accessories, giftware, and other merchandise.
The HomeGoods segment offers home basics, giftware, accent furniture, lamps, rugs, wall décor, and decorative accessories. The TJX Canada segment operates the Winners, Marshalls, and HomeSense chains in Canada.
The TJX Europe segment operates T.K. Maxx and HomeSense chains in Europe. The company was founded by Stanley Harris Feldberg and Sumner L. Feldberg in 1956. –CNN