TJX Boosts Net Income 14 Percent in Second Quarter
Posted on August 17, 2011 by
FRAMINGHAM, Mass.-With both sales and margins picking up steam in spite of the lagging economy, The TJX Cos. posted net income of $348.3 million in its fiscal second quarter, up 14 percent over the second quarter of last year.
Net sales reached $5.5 billion for the quarter, which ended on July 30, representing a 7.9 percent increase and including a 4 percent rise in same-store sales for the whole company. Carol Meyrowitz, CEO, said in a conference call to financial analysts that customer traffic was strong throughout the quarter, in particular for the Marmaxx stores (T.J. Maxx and Marshalls) and HomeGoods. The Marmaxx unit reported a same-store sales gain of 5 percent, while HomeGoods' comparable-store checkouts rose 3 percent. Sales were somewhat weaker in the company's Canadian and European stores.
Gross margin rose by 67 basis points to 27.3 percent. Selling, general and administrative expenses increased 8.2 percent in dollars and four basis points as a percentage of sales, to 16.9 percent.
Speaking to the analysts, Meyrowitz said the company as a whole is well positioned for the remainder of the fiscal year. "I love our marketing plans and ideas, and I'm confident that these efforts will continue to drive customer traffic," she said.
Meyrowitz's comments were taken from a transcript of the call obtained from SeekingAlpha.com.