TJX Q3 Net Fuels to 34.9 Percent Gain
FRAMINGHAM, Mass.-With better-than-expected increases in sales--including an especially strong performance from HomeGoods, its home specialty chain--The TJX Cos. enjoyed a 34.9 percent climb in net income, to $622.7 million, in its third quarter ending on Nov. 2.
Total company net sales were up 8.9 percent to $7 billion, and included 5 percent companywide increase in same-store sales. HomeGoods outpaced the other segments in the company with increases of 16 percent in total sales and 10 percent in same-store sales. TJX Europe also turned in a healthy quarter with increases of 15.3 percent in total sales and 5 percent in same-store sales.
Total company gross margin was up 54 basis points to 29.3 percent, due to improvements in merchandise margins along with buying and occupancy leverage on the above-plan sales. Selling, general and administrative expenses increased 6.3 percent in dollars but fell 41 basis points as a percentage of sales, to 16.6 percent.
Carol Meyrowitz, CEO of TJX, said, "We believe these robust results demonstrate, once again, our ability to succeed in all types of economic and retail environments." Meyrowitz said the company has raised its full-year guidance as a result of the third-quarter figures. The company now expects same-store sales for the year to finish up 3 percent over the prior year, and that earnings per share should register a gain of 13 to 15 percent year over year.