TJX Net Climbs 13.5 Percent in 3Q
FRAMINGHAM, Mass.-Sales gains in all of its divisions helped propel The TJX Cos. to a 13.5 percent jump in net income in its third quarter, to $461.6 million.
For the company as a whole, net sales in the third quarter, which ended on Oct. 27, reached $6.4 billion, up 10.7 percent from last year, including a 7 percent increase in consolidated same-store sales. Carol Meyrowitz, the company's CEO, said the same-store sales gain was fueled by increases in customer traffic in all of its divisions.
TJX's HomeGoods division was a star performer for both the top and bottom lines, recording a sales gain of 15.7 percent and an increase in segment profit of 21.6 percent. The company also benefited from strong results from TJX Europe, whose sales rose 12.9 percent and whose profit skyrocketed by 81.3 percent.
TJX's gross margin increased 70 basis points to 28.8 percent. Selling, general and administrative expenses were up 14.3 percent in dollars and 54 basis points as a percentage of sales, to 17 percent.
Looking ahead, Meyrowitz said the holiday season promises "terrific opportunities" for all of TJX's divisions. "We are leveraging our four powerful divisions and have deep confidence in our ability to continue delivering profitable growth and high financial returns for many, many years," she said.