TJX beats Street and boosts outlook amid traffic increases

Marianne Wilson
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HomeGoods exterior

The TJX Cos. reported a solid set of numbers for its third quarter as shoppers flocked to its stores in search of bargains. 

The off-price giant reported net income of $828.3 million, or $0.68 per share, for the quarter ended Nov. 2, up from $762.3 million, or $0. 61 per share, last year. Analysts had expected earnings per share of $0.66.

Net sales in the quarter passed the $10 billion mark, rising 6% to $10.45 billion, easily topping estimates of $10.32 billion. Consolidated same-store store sales increased 4%, driven by increased customer traffic across all its divisions, TJX said.

By brand, comparable sales rose 6% at Marmaxx (TJ Maxx and Marshalls), 6% at TJX International and 2% at TJX Canada. Same-store sales inched up 1% at Home Goods. 

“With our above-guidance third-quarter results, we are raising our full-year earnings per share guidance,” said CEO and president Ernie Herrman. “Looking ahead, the fourth quarter is off to a solid start and we have many initiatives underway to keep driving traffic and sales to our stores and online during the holiday season and beyond. Longer term, we are confident that we can gain additional market share and continue the successful growth of TJX in the U.S. and internationally.”

For the full-year, the company expects earnings per share in the range of $2.61 to $2.63. Analysts expect $2.61.

Analyst Neil Saunders, managing director of GlobalData Retail, said he was confident that TJX will perform well during the holidays. 

“Over the past few years the business has grown its share of holiday sales – both for gift buying and for self-purchases such as party wear,” he noted. “In past seasons its marketing and advertising has been strong and has resonated with consumers. We expect this to be replicated again this year with the messages amplified by an increased desire among consumers to secure great value for money.”

As of November 2, 2019, TJX Cos. operated a total of 4,519 stores in nine countries, the United States, Canada, the United Kingdom, Ireland, Germany, Poland, Austria, the Netherlands, and Australia, and four e-commerce sites. These include 1,271 TJ Maxx, 1,125 Marshalls, 807 HomeGoods, 46 Sierra, and 32 Homesense store in the United States; 279 Winners, 136 HomeSense, and 97 Marshalls stores in Canada; 594 TK Maxx and 78 Homesense stores in Europe; and 54 TK Maxx stores in Australia. The company also operates websites for many of its divisions.