TJX raises outlook for Q3, full year

FRAMINGHAM, Mass. TJX raised its outlook for third quarter and full year sales and earnings and provided updated information on its growth model for the next three fiscal years.

With October sales trending significantly above the company’s expectations, TJX now expects comparable-store sales to increase in October by 9% to 11% both on a consolidated basis and at Marmaxx. For third quarter fiscal 2010, the company now expects diluted earnings per share from continuing operations to be in the range of 77 cents to 79 cents compared with 58 cents in the prior year.

The company has also raised its estimate for full year fiscal 2010 results, reflecting the expected stronger third quarter. For the full year fiscal 2010, TJX now expects diluted earnings per share from continuing operations in the range of $2.46 - $2.54, compared with $2.08 per share last year. The outlook for fourth quarter remains unchanged from the most recent forecast provided by the company, which estimates diluted earnings per share from continuing operations to be in the range of 60 cents – 66 cents.

Additionally, the company has updated its outlook for the short and long term segment profit margin of Marmaxx, the company’s largest division, for this period. The updated full year fiscal 2010 outlook of 10.7% to 10.9% is greater than the company’s prior estimates of this division’s profit potential of 9% to 10%. The company believes that Marmaxx can sustain this new level of profitability and now estimates Marmaxx’s segment profit margin to ultimately fall in the 10.5% to 11.5% range for the three-year period.