The jury is out on that one, especially as the critical holiday shopping season kicks off, but the owner and operator of popular clothing and accessories discount chain TJ Maxx is doing something right.
In a sea of tepid if not weak retail earnings, TJX on Tuesday posted fiscal third-quarter earnings of $828.3 million, or 68 cents a share, vs. $739.6 million, or 63 cents a share, in the year-ago. Analysts polled by FactSet had been expecting earnings of 66 cents a share.
Sales came in at $10.45 billion, above sales of $9.8 billion a year ago and above analysts' estimates of $10.32 billion. Same-store sales, a key metric in retail, gained 4% during the quarter, the company said.
On top of that, the company is optimistic about its crucial upcoming fiscal fourth quarter, which CEO Ernie Herrman note is "...off to a solid start.
The figures buck the trend of other retailers including rival Kohl's (KSS) - Get Report who have reported weaker-than-expected third-quarter results, and some other non-clothing retailers like Home Depot (HD) - Get Report , which revealed modestly higher quarterly numbers on Tuesday but trimmed back on its full-year sales forecasts.
For the fourth quarter of fiscal 2020, TJX said it expects per-share earnings in the range of 74 cents to 76 cents vs. earnings of 68 cents a share in the same period last year. Same-store sales are expected to be in the 2% to 3% range.
TJX stock was up 1.44%, or 86 cents a share, at $60.52 in morning trading on Tuesday. Shares have risen approximately 17% since the company's last earnings report in August.
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