As a number of leading U.S. retailers struggled through the first quarter of 2016, TJX Companies bucked that trend and reported solid gains for the first three months of its fiscal year.
For the quarter ending April 30, net sales increased 10% to $7.5 billion, with consolidated comparable store sales up 7%. Net income for the quarter was $508 million and diluted earnings per share were $0.76, a 10% increase over the prior year’s $0.69 diluted earnings per share.
“We are particularly pleased with our very strong customer traffic, which drove the comp increases at every division,” said Ernie Herrman, CEO and president of TJX. “This tells us that our strategies to bring consumers exciting values on an eclectic and ever-changing mix of the right fashions and brands, sourced from across the globe, are working.”
Comparable store sales were up across the company’s four divisions: Marmaxx, 6%; HomeGoods, 9%; TJX Canada, 14%; TJX International, 4%.
For the second quarter of fiscal 2017, the company expects diluted earnings per share to be in the range of $.77 to $.79 compared to $.80 last year. TJX officials are also raising its full year guidance to reflect its strong first quarter results. For the fiscal year ending January 28, 2017, the company now expects diluted earnings per share to be in the range of $3.35 to $3.42, which would represent a 1% to 3% increase over $3.33 in fiscal 2016.
“We see many opportunities in the U.S. and internationally for continued successful growth,” Herrman said. “We are extremely focused on achieving our goals for 2016 and motivated to surpass them. TJX has an exciting future ahead, and we have a strategic long-term vision to grow to be a $40 billion company and beyond.”
TJX operates a total of 3,661 stores in nine countries, including 1,163 T.J. Maxx, 1,010 Marshalls, 534 HomeGoods and 8 Sierra Trading Post stores in the U.S.