Framingham, Mass. – With performance on the top and bottom lines far exceeding third quarter guidance, TJX Cos. is boosting its full-year outlook.
Sales and comps were up in each of the company’s divisions, with strong performance in both home and apparel. Top-line results at U.S. banners were driven by higher average baskets and growth in transactions.
Ernie Herrman, CEO and president of TJX Cos., described the availability of product in the market as “off the charts.” He added, “The biggest challenge is not to get over our skis and buy too much too soon. We’re keeping a lot of liquidity, and our merchants are being very entrepreneurial.”
For the quarter ended Nov. 1, results by business segment included:
Marmaxx (U.S. TJMaxx, Marshalls and Sierra stores): Sales climbed 7% to $9.7 billion, with comp up 6%.
HomeGoods (including Homesense stores): Sales rose 8% to $2.5 billion, with comp up 5%.
TJX Canada: Sales were up 8% to $1.5 billion, with comp up 8%.
TJX International: Sales were up 9% to $2.0 billion, with comp up 3%.
Total net sales for the third quarter increased 7% to $15.1 billion, with consolidated comparable sales up 5%. Net income was $1.4 billion and diluted earnings per share were $1.28, up 12% compared to last year’s third quarter.
After third quarter comp, profitability of EPS all came in well above plan, the company said it is raising its guidance for the full fiscal year and now expects consolidated comparable sales to be up 4%.
TJX Cos. also increased its pretax profit margin outlook to 11.6%, up 0.1 percentage point versus the prior year’s 11.5%. The company raised its diluted earnings per share outlook to be in the range of $4.63 to $4.66, which would represent a 9% increase over the prior year’s $4.26.
