TJX Cos.

TJX Q2 Beats Estimates, Raises Full Year Outlook

In Industry News, Reports, What's New by Jeff PrineLeave a Comment

TJX Cos.Framingham, MA—Consumer demand for bargains helped TJX Cos. into a 14% second quarter profit increase and into a higher forecast for its full year earnings.

For the quarter ended August 3, the off-price retailer reported today net income of $479.6 million, or 66 cents a share, up from $421.1 million, or 56 cents a share, a year earlier.

That came in ahead of TJX’ own projection for a 61 to 63 cents a share and better than the 63 cents a share analysts had expected.

Net revenue rose 8.4% to $6.44 billion, beating analysts’ average estimate for $6.37 million in sales. Comparable store sales were up 4%. And gross margin widened to 28.8% from 28.1% a year ago.

‘Many Opportunities in 2nd Half and Beyond’

“The third quarter is off to a solid start and we see many opportunities for the second half of the year and beyond,” Carol Meyrowitz, TJX chief executive. “We are in an excellent inventory position, which gives us the flexibility to capitalize on the great brands and fashions available to us in the marketplace.”

By division, Marmaxx, which includes TJ Maxx and Marshalls, also reported a 4% increase in comp store sales. HomeGoods’ comp sales were up 8% and TJX Europe was up 6%.

For its third quarter, TJX projected per share earnings between 69 and 72 cents. Analysts’ estimate expects 71 cents a share.

Thanks to consecutive quarters of strong earnings so far, TJX raised its full-year forecast to $2.74 to $2.80 a share, up from $2.70 to $2.78. Comp sales estimates are for a 2 % to 3% increase.

Analysts’ forecast earnings of $2.82 a share for the fiscal year.

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