TJX reports sales, earnings increases for Q2

FRAMINGHAM, Mass. The TJX Companies reported that net sales for the second quarter of fiscal 2011 increased 7% to $5.1 billion and consolidated comparable-store sales increased 3% over last year. Net income for the second quarter was $305 million, and diluted earnings per share were 74 cents, compared with 61 cents per share last year.

For the first half of Fiscal 2011, net sales were $10.1 billion, an 11% increase over last year, and consolidated comparable-store sales increased 6% over the prior year. Net income was $636 million, and diluted earnings per share were $1.54 compared to $1.09 in the same period last year.

Carol Meyrowitz, president and CEO of TJX, stated, “I am very pleased with our second quarter performance, as our 20% increase in adjusted earnings per share was at the high end of our expectations and on top of three consecutive years of very strong second quarter operating results. We believe this speaks to the strength of our business model and our ability to drive profitable growth regardless of the economic environment. Customer traffic continued to increase significantly over large increases last year. In addition, we will be spending a larger portion of our marketing dollars in the second half of the year, when we face very challenging year-over-year comparisons, which represents a substantial increase over last year. We are seeing fabulous brands and fashions in the marketplace, and, with our very lean inventory levels, we are positioned extremely well to take advantage of these opportunities. We are looking forward to the second half of 2010 and remain very confident in our ability to deliver sustainable increases in profit and cash flow over the long term.”

For the full year fiscal 2011, the company is raising its outlook for earnings per share to be in the range of $3.28 to $3.38 on a reported basis, or $3.27 to $3.37 on an adjusted basis, excluding the non-operating item described above, which would represent a 15% to 19% increase over $2.84 per share last year. This range is based upon estimated consolidated comparable-store sales growth of approximately 2% to 3%.

The company’s full-year outlook assumes earnings per share for the second half of fiscal 2011 to be in the range of $1.75 to $1.85, which would represent flat to 6% growth over $1.75 per share in the prior year. This outlook is based upon an estimated range for consolidated comparable-store sales of -1% to 0%.

For the third quarter of fiscal 2011, the company expects earnings per share in the range of 86 cents to 91 cents, which would represent a 6% to 12% increase over 81 cents per share in the prior year. This outlook is based upon an estimated range for consolidated comparable-store sales of 0% to a 2% increase.