Aug 19, 2015
TJX same-store sales beat estimates, shares at record high
Aug 19, 2015
Retailer TJX Cos Inc reported a better-than-expected rise in quarterly comparable store sales as bargain-hungry shoppers flocked to its outlets.
Shares of the owner of off-price retailers TJ Maxx and Marshalls rose as much as 6.7 percent to a record high of $76.40 in early trading on Tuesday.
Sales at stores open for more than a year rose 6 percent in the second quarter ended Aug. 1, handily beating the 3 percent increase analysts polled by research firm Consensus Metrix had expected.
"It was great to see that comp sales were entirely driven by customer traffic - our fifth consecutive quarter of sequential traffic improvement," CEO Carol Meyrowitz said in a statement.
Unlike other retailers, sales at the company's stores have not been hurt by e-commerce, said Neil Saunders, chief executive of research firm Conlumino.
Off-price retailers such as TJX offer designer brands such as Dolce & Gabbana and Juicy Couture at low prices. Often, this is off-season merchandise sourced from manufacturers or department store operators.
"TJX lies in the sweet spot of retail, offering brand name products at attractively discounted prices catering to a strapped middle- and lower-income consumer looking for value," Retail Metrics President Ken Perkins wrote in a note.
Net income rose about 6 percent to $549.3 million, or 80 cents per share.
Revenue increased 6.5 percent to $7.36 billion.
Analysts on average had expected a profit of 76 cents per share on revenue of $7.25 billion, according to Thomson Reuters I/B/E/S.
TJX also raised its full-year profit forecast to $3.24-$3.28 per share from $3.21-$3.27. The company, which usually issues conservative forecasts, raised its full-year estimate in May.
Analysts were expecting a full-year profit of $3.30 per share.
The company's shares were trading up 5.7 percent at $75.73 on the New York Stock Exchange.
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