TJX beat Wall Street estimates in its third quarter, with growth in both comparable store sales and net sales.
For the third quarter ended October 29, TJX posted net income of $549.8 million, or 83 cents per diluted share, versus $587.3 million, or 86 cents per diluted share, in the year-previous period. With the effect of debt and a pension settlement excluded, adjusted diluted earnings per share were 91 cents, TJX noted, which beat an 87 cents analyst average estimate from MarketBeat.
Company comparable store sales gained 5%, with comp gains at the Marmaxx operation, including T.J. Maxx and Marshalls, up 5%, at HomeGoods, up 6%, and at TJX Canada, up 8%. Comps at TJX international, including operations in Europe and Australia, were flat. Net sales were $8.29 billion versus $7.75 billion in the year-earlier quarter.
“We are extremely pleased that our strong momentum in customer traffic and sales continued in the third quarter,” said Ernie Herrman, TJX president and CEO. “Our consolidated comparable store sales increase of 5%, over 5% growth last year, our net sales increase of 7%, over last year’s 5% increase, and our earnings per share all significantly exceeded our expectations. Again this quarter, our comp store sales growth was primarily driven by customer traffic. We are convinced that we are gaining consumer market share across all of our divisions. Our merchandise margin was up strongly. We have numerous initiatives underway to drive customers to our stores this holiday selling season and keep them coming back. We will be offering consumers eclectic gift selections from around the world, all at exciting values and shipping fresh assortments to our stores right through December and beyond.”
In the quarter, TJX opened 110 stores, with 60 of those located in the U.S. including 30 Home Goods units. The company operates a total of 3,785 stores in nine countries.