For the second quarter ended August 2, The TJX Cos., Inc. posted net income of $517.6 million, or 73 cents per diluted share, versus $479.6 million, or 66 cents per diluted share, in the year-prior period. Company-wide comparable store sales gained 3%, with the HomeGoods division up 5% and the Marmaxx division up 2%, TJX reported.
With a debt extinguishment charge of two cents per share excluded, adjusted diluted earnings per share came in at 75 cents. Earnings per diluted share beat the 73 cents expected in a Zacks Consensus Estimate of financial analysts.
Internationally, TJX Canada comps gained 3% while TJX Europe comps advanced 6%, the company added.
Second quarter net sales increased 7% to $6.92 billion, according to the company.
Carol Meyrowitz, TJX CEO, said in announcing the financial results, “Consolidated comp store sales were up 3% over 4% growth last year, at the high end of our plan, and adjusted earnings per share of 75 cents were up 14% over last year’s 18% increase, exceeding our expectations. Our customer traffic gained momentum throughout the quarter and was positive in July. Further, we are pleased with our solid merchandise margins as well as the improved performance of our apparel businesses. We are now raising our full-year adjusted earnings per share guidance to reflect our above-plan second quarter results. The third quarter is off to a solid start and we are excited about our opportunities for the second half of the year. We entered the third quarter in an excellent inventory position and see plentiful opportunities for great brands in the marketplace. We are raising the bar on our marketing campaigns and gift-giving initiatives, which I believe are going to be even better than last year, and above all, we will be bringing consumers amazing values. We are very confident in our ability to deliver another strong year, on top of many, as we continue on the path to being a $40 billion-plus company.”
As of August 2, TJX operated a total of 3,279 stores in six countries, the United States, Canada, Ireland, the United Kingdom, Germany and Poland, as well as three e-commerce websites. The store total includes 1,090 T.J. Maxx, 956 Marshalls, 464 HomeGoods stores and four Sierra Trading Post stores in the United States, 230 Winners, 92 HomeSense and 33 Marshalls stores in Canada, and 382 T.K. Maxx and 28 HomeSense stores in Europe.