TJX meets Street with lower Q3 profit, misses on sales

Framingham, Mass. – The TJX Companies Inc. met Wall Street expectations with net income of $594.96 million in the third quarter of fiscal 2014, down 4% from $622.65 million in the same quarter the prior year. Net sales rose 5% to $7.37 billion from $6.98 billion, short of Wall Street expectations.

Same-store sales grew 2%. Rising cost of sales, selling, general and administrative (SG&A) expenses, and debt extinguishment contributed to the decline in net income. Carol Meyrowitz, CEO of TJX, struck an optimistic tone in her comments, saying traffic gained momentum despite unusually warm weather and that holiday performance looks strong.

“I am very pleased with our third quarter performance,” said Meyrowitz. “Our same-store sales increase of 2% was at the high end of our plan against 5% growth last year, our strongest quarter of 2013.”

Looking ahead, TJX expects earnings per share growth in the fourth quarter and full year 2014, with negative impact from foreign currency exchange rates, and positive same-store sales growth during those periods, as well.