Off-pricer turns in another strong performance; continues to grow footprint

There was no stopping TJX Cos. in its second quarter. But it sounded a cautious note about its third quarter.



For the quarter ended July 30, TJX posted a profit of $562.2 million, better than analysts’ forecasts, up from $549.3 million in the year-ago period.



Revenue increased 7% to a better-than-expected $7.88 billion. Same-store sales rose 4%, above expectations for an increase of 2% to 3%.



And at a time when many other retailers are closing stores, TJX continues to expand its portfolio. The retailer increased its store count by 14 stores in the quarter, bringing its total store count to 3,675 locations. Square footage rose by 5% over the same period last year.



“We believe our robust sales, customer traffic and merchandise margins all speak to the strength of our off-price retail model,” said Ernie Herrman, CEO and president, TJX Companies. “With our above-plan second quarter results, we are raising our guidance for full year comp sales to increase 3% to 4% and earnings per share to be in the range of $3.39 to $3.43.”



On a more downbeat note, TJX forecast current-quarter profit below estimates, due to wage increases and a strong dollar. The company forecast per-share earnings of 83 cents to 85 cents. Analysts expected per-share profit of 90 cents.