TJX Cos. posts 3% Sept. sales increase

FRAMINGHAM, Mass. TJX Cos. posted September 2008 sales of $1.83 billion for the five-week period ended Oct. 4, up 3% over $1.78 billion in 2007. Comparable-store sales decreased 1%.

Foreign currency exchange rates negatively impacted September comparable-store sales by two percentage points, which was unanticipated in the company’s prior guidance. Excluding the impact of foreign currency exchange rates, comparable-store sales increased 1% for the month.

"Although September consolidated comparable-store sales were below plan, customer transactions were up across virtually all divisions," stated president and ceo Carol Meyrowitz. "Also, despite economic concerns internationally, our divisions in these markets had strong performance. With the volatile economic environment in the U.S., and a generally warmer September than last year, we were pleased to see sales trends in the U.S. dramatically improve at the end of the month as the weather turned more seasonable in key regions. While we believe that consumers are worried, we also believe that with the right execution of our resilient business model, our financial strength, extremely well controlled inventories, strong merchandise margins, and the excellent values we offer our customers, we are in an excellent position going into the holiday season."

The company is lowering its guidance for third-quarter EPS to the range of 55 cents to 58 cents, primarily to reflect lower-than-expected sales. The guidance assumes a negative impact from foreign exchange rates of 1 cent per share and represents a 2% to 7% increase over the 54 cents in diluted EPS in the prior year.