For the third quarter ended October 31, The TJX Cos. posted net income of $587.3 million versus $595 million in the year-prior period and diluted earnings per share of 86 cents versus 85 cents in the year-earlier frame. Net sales for the third quarter increased 5% to $7.75 billion and consolidated comparable store sales increased 5%.
A Thomson Reuters analyst average estimate called for earnings per share of 84 cents.
Comps at Home Goods increased by 6%, while those at the Marmaxx Group, including T.J. Maxx and Marshalls, advanced 3%. Internationally, TJX Canada enjoyed 10% comp growth while TJX Europe experienced a 7% comp gain. International comparable store sales are calculated on a constant currency basis, the company pointed out, and comps generally do not include any online revenues, which are generated by Sierra Trading Post, tjmaxx.com and tkmaxx.com.
Foreign currency exchange rates had a three percentage point negative impact on third quarter consolidated net sales growth, TJX asserted, and a four cents per share negative impact on earnings versus a one cent positive effect last year.
Carol Meyrowitz, TJX chairman and CEO, said, “Our 5% consolidated comparable store sales growth, over a 2% increase last year, continued our excellent trend from the first two quarters and significantly exceeded our plans. Our 86 cents in earnings per share was also well above our expectations. We are delighted that strong customer traffic drove our entire consolidated comp and was the primary driver of our comp increases at every division. Our excellent traffic gains and strong performance across our apparel, accessories and home categories demonstrate that our brands globally are offering the right values and merchandise mix. Again this quarter, we saw strong sales at every division. I am particularly pleased with our ability to simultaneously deliver exceptional value to consumers while maintaining strong merchandise margins, which speaks to the flexibility of our off-price business model.”
She added, “Our goal is to keep serving consumers and growing our market share around the world. To that end, we continue to balance growth with investments in our future to establish a strong foundation in the U.S. and internationally. Further, we were happy to add Trade Secret, an Australian off-price retailer, to our family of companies in October. As to the fourth quarter, we are pleased to see that traffic continues to be up, and we could not be more excited about the holiday selling season. I am convinced that our gift-giving selections are better than ever this year and that our holiday marketing campaigns will resonate with consumers and attract more shoppers to our stores.”
In the third quarter TJX increased its store count by a net of 133 to a total of 3,594 locations.