TJX Net Gains 13.9 Percent in Q2
FRAMINGHAM, Mass.-With sales across all of its divisions showing healthy increases, The TJX Cos. posted a 13.9 percent rise in second-quarter net income, which reached $479.6 million.
Total company net sales in the quarter, which ended on Aug. 3, was $6.4 billion, up 8.4 percent from last year's second quarter. Same-store sales for the company rose 4 percent, on top of a 7 percent pickup from last year.
Looking at TJX's divisions, HomeGoods reported a same-store sales increase of 8 percent, on top of a gain of 9 percent last year. The Marmaxx group's same-store sales were up 4 percent on top of a 7 percent rise from last year. TJX Canada's same-store sales edged up 2 percent, and TJX Europe came in with a 6 percent same-store sales gain.
Gross margin for the company as a whole picked up 70 basis points to 28.8 percent. Selling, general and administrative expenses increased 9.8 percent in dollars and 22 basis points as a percentage of sales, to 16.7 percent.
Carol Meyrowitz, TJX's CEO, said the quarter finished above the company's expectations, and added that the third quarter is off to "a solid start." Meyrowitz said the company has "exciting" marketing and in-store programs on tap for the quarter. In addition, "we see great opportunities in our brick-and-mortar business and are excited about the long-term potential of e-commerce as another avenue to bring our values to even more consumers."