TJX Companies (TJX) posted stronger-than-expected first quarter earnings Tuesday, while boosting its full-year profit guidance, following surprisingly solid same-store sales.
TJX said earnings for the three months ending ion May 4 came in at 57 cents per share, just ahead of the Street consensus of 55 cents per share. When the company's stock split from September 2018 is taken into account, the comparable change is a gain of 1.8%.
Group net revenues rose 7% to $9.28 billion, the company said, topping analysts' estimates of $9.21 billion as same-store sales at its TJMaxx and Marshall's and HomeGoods brands rose 5% from the same period last year, well ahead of the 3.4% forecast.
Looking into the fiscal year that ends in early 2020, TJX said its sees a bottom line in the range of $2.56 to $2.61 per share, a 5% to 7% increase over the prior year's $2.43.
"It is terrific to see the continued strength of our largest division, Marmaxx, with an outstanding 6% comp increase. Further, Marmaxx's apparel and home categories were both very strong," said CEO Ernie Herrman. "Once again this quarter, customer traffic was the primary driver of our consolidated comp increase and was up at each of our four major divisions. We believe this is a great indicator of the enduring appeal of our great values on an eclectic and exciting mix of merchandise and our treasure-hunt shopping experience, as well as the resiliency of our off-price retail model."
"With our above-plan first quarter results, we are raising our full-year earnings per share outlook. We are in an excellent position to take advantage of the abundant buying opportunities we are seeing in the marketplace for quality, branded merchandise and to keep flowing fresh, exciting assortments to our stores and online," he added. "We have many initiatives underway to keep driving sales and customer traffic, and feel great about our ability to continue gaining market share around the world."