TJX Grows Comps, Net Income In Q1

For the first quarter ended May 2, The TJX Companies, Inc. posted net income of $474.6 million, or 69 cents per diluted share versus $454.3 million, or 64 cents per diluted share, in the year-earlier period. Consolidated comparable store sales increased by 5%, the company reported.

A Zacks Investment Research analyst average estimate called for earnings per diluted share of 66 cents.

By division, comps at the Marmaxx Group, including T.J. Maxx and Marshalls operations, increased 3% while those at HomeGoods advanced 9%, as comps at TJX Canada gained 11% and comps at TJX Europe increased 3%.

Net sales for the first quarter increased 6% to $6.87 billion.

Carol Meyrowitz, TJX CEO, stated, “Our 5% consolidated comparable store sales growth and 8% increase in earnings per share were both well above our plan. Our outstanding values and exciting mix of apparel and home fashions continue to resonate with shoppers across all of our geographies. It was great to see that, similar to last quarter, comp sales were almost entirely driven by customer traffic and we had a significant increase in units sold. At the same time, we also saw a strong increase in our merchandise margins. We were very pleased that we achieved these strong results despite significant foreign currency headwinds and while simultaneously investing in our business to support our growth goals. Our underlying business remains strong, our values are better than ever, and we have many exciting initiatives planned for the remainder of the year to continue driving sales and customer traffic. Further, we are thrilled to see our retail brands becoming more powerful and recognizable with consumers.”

TJX added 46 stores in the first quarter, including 11 HomeGoods locations, to bring its total to 3,441.