This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

TJX Beats by a Penny, Raises Full-Year Guidance

NEW YORK (TheStreet) -- TJX (TJX - Get Report), the parent company of the popular discount apparel retailers T.J. Maxx, Marshalls and home furnishings specialty store, HomeGoods, once again surpassed Wall Street expectations for the third quarter.

TJX reported earnings for the Nov. 2-ending quarter of $623 million, or 86 cents a share, slightly higher than the upped guidance the discount retailer shared in October.

Excluding a previously announced 11-cent tax benefit, adjusted diluted earnings per share came in at 75 cents, up 21% over last year's quarter and beating Wall Street expectations by a penny.

TJX's net sales rose 9% to $7 billion, also surpassing Wall Street expectations of $6.91 billion in quarterly revenue.

Must Read: Best Buy's (BBY) Bid to Be the Cheapest Hurts Profitability

Total comparable store sales, which includes Marmaxx (the combination of T.J. Maxx and Marshall's) as well as HomeGoods, rose 5%, surpassing the October guidance of 4% comp growth, however below the company's second quarter comp growth of 7%.

HomeGoods had particularly strong comp growth of 10%.

Shares were trading 0.50% higher before the markets opened to $62.80.

The Framingham, Mass.-based company is benefitting from strong sales as consumers flock to its stores for bargain hunting as well as the popular category of home furnishings. TJX is positioned well for the holiday season.

"We are very pleased that our strong momentum continued in the third quarter. Our 21% increase in adjusted earnings per share and 5% consolidated comparable store sales growth were both well above our original plan and achieved over strong comparisons last year," CEO Carol Meyrowitz said in the earnings statement. "We believe these robust results demonstrate, once again, our ability to succeed in all types of economic and retail environments."

The company maintained its fourth-quarter earnings per share in the range of 77 cents to 80 cents, down from the 82 cents a share it reported last year. (Last year's fourth quarter included an 8-cent per share earnings benefit from the extra week in the fiscal calendar.)

T.J. Maxx expects comp sales for the fourth quarter of just 1% to 2% due to the six fewer shopping days in the Christmas selling season.

"The fourth quarter is off to a good start and we see exciting opportunities for this holiday selling season: we have great initiatives planned and will be shipping fresh gift-giving selections to our stores throughout the holiday season; we expect our marketing campaigns will be seen by more people than ever before; and as always, we will be offering consumers extreme values on great fashions and brands! Longer term, we see tremendous potential ahead for TJX, and we remain very confident in our ability to continue driving substantial top- and bottom-line growth," Meyrowitz said in the statement.

However, the retailer raised its full-year earnings guidance even further to a range of $2.91 to $2.94 a share compared to its upped guidance of $2.89 to $2.93 a share in October and well above last year's earnings of $2.55 a share. On an adjusted basis, which excludes the 11-cent tax benefit in the third quarter, TJX's guidance ranges from $2.80 to $2.83 a share.

-- Written by Laurie Kulikowski in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
TJX $75.82 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs