By Melodie Warner
TJX Cos.'s (TJX) fiscal third-quarter earnings rose 14% as the
off-price seller of brand-name apparel and home furnishings beat
consensus sales estimates and improved margins.
The company also raised its full-year earnings estimate by a
penny, now expecting $2.45 to $2.48 a share. TJX also forecast
current-quarter adjusted earnings of 72 cents to 75 cents a
share--including a seven cents a share benefit from an extra
week--on flat to a 2% increase in same-store sales, while analysts
surveyed by Thomson Reuters expect 76 cents.
TJX had raised its fiscal third-quarter and full-year guidance
earlier this month after it posted stronger October same-store
sales. The parent of T.J. Maxx, HomeGoods and Marshalls has seen
increased profits for more than a year as it continues to appeal to
budget-conscious consumers worried about rising gasoline prices and
a slow economic recovery.
For the quarter ended Oct. 27, TJX reported a profit of $461.6
million, or 62 cents a share, up from $406.5 million, or 53 cents,
a year earlier. Its Nov. 1 projection was for per-share earnings of
about 61 cents a share, including a two-cent charge related to its
pension accrual.
Sales jumped 11% to $6.41 billion, topping the $6.39 billion
forecast from analysts polled by Thomson Reuters.
Gross margin rose to 28.8% from 28.1%.
Same-store sales rose 7%, compared with 3% growth a year
earlier. In the U.S., the Marmaxx division--which combines T.J.
Maxx and Marshalls--saw same-store sales rise 7% while HomeGoods
posted a 6% increase. Same-store sales at TJX Canada and TJX Europe
were up 4% and 11%, respectively.
Total inventories as of Oct. 27 fell to $3.3 billion from $3.7
billion a year earlier.
Shares closed Monday at $40.97 and were inactive premarket. The
stock has risen 27% so far this year.
Write to Melodie Warner at melodie.warner@dowjones.com
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