TJX raises outlook after solid 3Q performance

FRAMINGHAM, Mass. TJX today reported that net sales for the third quarter ended Oct. 27 increased 6% to $4.7 billion and net income of $249 million, or 54 cents per diluted share, compared with earnings of 48 cents per share last year. The company reported that consolidated comparable-store sales increased 3% over last year.

Carol Meyrowitz, president and ceo of TJX. stated, “I am very pleased with our third quarter performance. The 13% increase in earnings per share from continuing operations was achieved on top of a very strong 50% increase last year, clearly demonstrating our ability to deliver sustained earnings growth, even in difficult environments and against tough comparisons. These results were achieved through solid execution of the off-price model, specifically our disciplined management of inventories and open-to-buy, as well as our continued focus on cost reduction. While sales were slightly below plan, we believe this was mostly due to unseasonably warm weather through the majority of September and October. Importantly, as the weather cooled towards the end of the quarter, we saw a strong surge in sales and demand for cold weather apparel. We enter the fourth quarter with very clean, fresh inventories, and significantly more liquidity than at this time last year, which positions us well to take advantage of a market full of buying opportunities and flow great gift product throughout the holiday selling season.”

TJX said that it has raised its earnings guidance for the fourth quarter. The company now expects earnings per share from continuing operations to be between 58 cents to 60 cents, which represents a 14% to 18% increase over 51 cents per share in the prior year. For the fiscal year ending Jan. 26, 2008, the company now expects earnings per share from continuing operations in the range of $1.58 to $1.60.