Strong Customer Traffic Drives TJX Comps In Q2

Strong customer traffic drove stellar results for TJX across its retail banners in the second quarter.

In the second quarter, the company recorded net income of $739.6 million, or $1.17 per diluted share, versus $553 million, or 85 cents per diluted share, in the year-previous quarter. Earnings per diluted share beat a Zacks Investment Research consensus analyst estimate of $1.05.

Consolidated comparable store sales increased 6% in the quarter year over year. Customer traffic was the primary comp driver for the company, TJX, stated, and for every division. Comps gained 3% at HomeGoods and 7% at Marmaxx, including the T.J. Maxx and Marshalls operations, as well as 6% at TJX Canada and 4% at TJX International, versus the year-before period.

TJX posted a net sales increase of 12% for the quarter versus the year-prior period to $9.33 billion.

Ernie Herrman, TJX president and CEO, said, “We are extremely pleased with our second quarter results. Both our consolidated comp store sales growth of 6% and earnings per share of $1.17 significantly exceeded our expectations. Marmaxx, our largest division, delivered a very strong 7% comparable store sales increase. Customer traffic was once again the primary driver of our comp store sales increases at all of our divisions as we continue to reach a very wide customer demographic. Further, this marks the 16th straight quarter of customer traffic increases for TJX and Marmaxx. We have been attracting new customers to all our divisions, a significant share of whom are younger customers. This is great for our business today and for the future. Our teams delivered sharp execution of our off-price fundamentals across the company, and customers responded to our great brands, fashions, and eclectic selections at excellent values. With our strong second quarter performance, we are raising our guidance for full-year earnings per share and comparable store sales growth. Looking forward, the third quarter is off to a very strong start, and we have many exciting opportunities we are pursuing in the second half of the year. We are very confident that we will continue to gain market share and grow successfully around the world.”