Art of the deal: TJX wins again with 7% Q1 comp

Shoppers love a deal – the perception of one anyway – which explains how TJX Companies continues to defy gravity by posting another quarter of strong same store sales growth and improved profitability.



The leading off-price retailer of apparel and home fashions in the U.S. and worldwide said sales for its first quarter ended April 30 increased 10% to $7.5 billion and same store sales increased 7% on top of a prior year increase of 5%. Net income for the first quarter was $508 million and earnings per share increased 10% to 76 cents from 69 cents.



TJX President and CEO Ernie Herrman said the strong quarter was a great start to the year and a continuation of the momentum the company has been experiencing.



“We are particularly pleased with our very strong customer traffic, which drove the comp increases at every division,” Herman said. “This tells us that our strategies to bring consumers exciting values on an eclectic and ever-changing mix of the right fashions and brands, sourced from across the globe, are working. We are confident that we are growing our customer base and gaining market share.”



With the company’s second quarter also off to a solid start, Herman increased the full year same store sales guidance and profit forecast.



“We see many opportunities in the U.S. and internationally for continued successful growth. We are extremely focused on achieving our goals for 2016 and motivated to surpass them,” Herman said. “TJX has an exciting future ahead, and we have a strategic long-term vision to grow to be a $40 billion company and beyond.”



TJX currently operates 3,661 stores following the addition of 47 units during the first quarter.