Optimistic about Its Q3, TJX Raises Profit, Sales Forecasts

TJX Cos.Framingham, MA—While most retailers have pulled back on their third quarter forecasts, only a handful have suggested increasing their forecasts.

One that has is TJX Companies, which operates Marshalls and T.J. Maxx. The off-price retailer said Monday that rising sales and better margins resulted in a raised third quarter and full year guidance.

“TJX now believes that its Marmaxx division can grow to substantially more stores in the U.S. than it had previously estimated. Marmaxx has seen successful growth in both major cities and rural areas over the last several years, which has given the company the confidence to increase its growth estimates,” the company stated.

Besides it U.S. business, TJX said its European division, TJX Europe, has the potential for profit margins to rise from 8% to 10%. In fact, the retailer is expected to announce at an investor meeting today that it plans to open more stores than previously announced.

For its third quarter, which ends Oct. 31, TJX now projects earnings between 84 to 85 cents a share incorporating a tax benefit not previously included. Adjusted earnings are expected between 73 to 74 cents a share ahead of the 72 cents a share that analysts’ projected.

Looking ahead to its full year, TXJ now forecasts earnings of $2.89 to $2.93 a share, or $2.78 to $2.82 on an adjusted basis, an increase from its previous forecast for $2.74 to $2.80 a share. And ahead of analysts’ average estimate for $2.84 a share for the year.

Comparable store sales are expected to rise 4% in its third quarter, up from the the 2% to 3% increase TXJ forecast in August during its second quarter earnings report.

 

 

 

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Jeff Prine

Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com