TJX Posts 58 Percent Profit Windfall in Q1
FRAMINGHAM, Mass.-Strong performances from all of its divisions elevated net income for The TJX Cos. by 58 percent in its first quarter, to $419.2 million.
Net sales in the quarter, which ended on April 28, reached $5.8 billion, up 11 percent, including a pickup of 8 percent in consolidated same-store sales. Looking at each of TJX's divisions, Marmaxx (comprising Marshalls and TJMaxx) posted a same-store sales gain of 8 percent, while HomeGoods registered an increase of 9 percent in same-store sales. TJX Canada's comparable-store sales rise was 6 percent, and TJX Europe enjoyed a 13 percent jump in comparable-store sales.
"We saw significant increases in customer traffic across all divisions in the first quarter over last year," said Carol Meyrowitz, TJX's CEO, who added that this points to "the strength of our values and our brand content. May is off to a strong start, and we begin the second quarter in an excellent inventory position to buy into current opportunities in the marketplace."
TJX's numbers were also positive from the expense standpoint. Selling, general and administrative expenses were down 1.3 percent in dollars and 203 basis points as a percentage of sales, to 16.3 percent. Gross margin gained 146 basis points to finish the quarter at 28.2 percent.
Meyrowitz said the prospects for TJX remain positive for the balance of the year with "our ability to continuing achieving profitable growth and excellent financial returns in the short and long term."