For the third quarter, TJX kept rolling, pointing to customer traffic as driving its earnings and sales performance as the off-price retailer positioned its holiday marketing campaigns for the fourth quarter.
The company posted net income of $828.3 million, or 68 cents per diluted share, in the third quarter versus $762.3 million, or 61 cents per diluted share, in the previous third quarter. TJX’s diluted earnings per share topped a MarketBeat-published analyst consensus estimate of 66 cents.
Consolidated comparable sales increased 4% in the quarter year over year. By division, comps for Marmaxx, which includes T.J. Maxx and Marshalls stores, increased by 4%; HomeGoods increased by 1%; TJX Canada increased by 2%; and TJX International increased by 6% versus the year-before period.
The off-price retailer posted a 6% net sales increase for the quarter to $10.45 billion versus the period a year prior.
Beyond financial results, TJX also pointed out that, on November 18, it completed an investment of $225 million for a 25% ownership stake in privately held Familia, Russia’s only major off-price apparel and home fashions retailer, with 275 stores. TJX, added that its non-controlling, minority position gives TJX an opportunity to invest in an established off-price retailer with significant growth potential in the Russian market.
Ernie Herrman, TJX president and CEO, said, “We are extremely pleased with our strong performance in the third quarter as both sales and earnings per share exceeded our expectations. Consolidated comp store sales increased 4% over a very strong 7% increase last year, and earnings per share were 68 cents. We are especially pleased that Marmaxx, HomeGoods, and TJX Canada each delivered a sequential increase in their comp store sales growth, and TJX International maintained its strong momentum driven by excellent performance in Europe. Further, customer traffic was the primary driver of the comp store sales increases at each of these four major divisions. With our above-guidance third quarter results, we are raising our full-year earnings per share guidance. 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. We are convinced our holiday marketing campaigns will position us as a top shopping destination for exciting gifts at amazing prices. We are seeing fantastic, widespread availability of quality, branded merchandise and are in a great position to capitalize on these opportunities. 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.”