Off-price giant soars in Q3; raises outlook

The TJX Companies topped earnings and sales forecasts for its third quarter as deal-loving consumers flocked to its stores.



The off-price apparel and home goods retailer reported that net sales for its third quarter, ended Oct. 29, rose 7% to $8.3 billion, on top of a 5% increase last year.



Consolidated same-store sales rose 5%, over last year’s 5% increase. At Marmaxx, a division includes Marshall's and T.J. Maxx, same-store sales rose 5% compared to estimates for a 3.4% increase. HomeGoods reported a 6% same-store sales gain, beating estimates for a 5% increase. T.J. Maxx Canada saw sales rise 8%, higher than estimates for a 5.6% gain.



TJX’s net income for the third quarter was $550 million and diluted earnings per share were $.83.



Excluding the impact of a debt extinguishment charge and pension settlement charge, which combined reduced earnings per share by $.08, adjusted diluted earnings per share were $.91. This compares to diluted earnings per share of $.86 in the prior year.



The retailer lifted its full-year earnings outlook to $3.46 to $3.48 a share from a prior projection of $3.39 to $3.43 a share.



“We are extremely pleased that our strong momentum in customer traffic and sales continued in the third quarter,” said Ernie Herrman, CEO and president, The TJX Companies.” We are convinced that we are gaining consumer market share across all of our divisions.”



Herrman said that company has numerous initiatives underway to drive customers to its stores this holiday season and keep them coming back.



“We are on our way to becoming a $40 billion-plus company,” he said.