TJX Raises Expectations for Store Counts, Financial Performance
FRAMINGHAM, Mass.-As it prepares to hold an investor event today, The TJX Cos. has increased its forecasts for both long-term store growth and financial performance for the third quarter and the full fiscal year.
In a company statement, TJX said it is raising its estimates for store growth with its current chains in its current markets. The company said it now believes that its Marmaxx division (consisting of T.J. Maxx and Marshalls) can expand to substantially more stores in the United States than it had previously estimated. "Marmaxx has seen successful growth in both major cities and rural areas over the last several years, which has given the company the confidence to increase its growth estimates," TJX said.
TJX Europe (consisting of T.K. Maxx and HomeSense) now has the potential to achieve a 10 percent-plus segment profit margin, up from the previous model of 8 percent-plus margin. The division has turned in strong results for the past seven quarters, giving TJX the basis for these expectations, the company said.
For the third quarter, TJX said consolidated same-store sales should increase by 4 percent, on top of the 7 percent same-store gain from last year's third quarter. For the full fiscal year, consolidated same-store sales are now projected to rise by 2 to 3 percent, the company said. TJX is also forecasting net sales growth of from 6 to 7 percent for each of the next three years, with about 2 percent coming from same-store sales and 4 to 5 percent from growth in square footage.
Earnings per share is expected to finish the third quarter at from 84 to 85 cents, on top of last year's third-quarter earnings per share of 62 cents. TJX is also modeling increases in earnings per share of from 10 to 13 percent for each of the next three years.