By John Kell
TJX Cos. (TJX) issued a rosier fiscal third-quarter outlook,
news that sent the discount retailer's shares higher in after-hours
trading.
The parent of T.J. Maxx, HomeGoods and Marshalls has reported
earnings growth in recent years as it continues to appeal to
budget-conscious consumers during a slow economic recovery. The
company's bullish outlook commentary, issued a day before TJX is
hosting an investor event, also contrasts with the poor performance
by many other retailers that are struggling with weaker
traffic.
TJX sees an adjusted third-quarter profit between 73 cents to 74
cents a share on same-store sales growth of about 4%, better than
the prior outlook of 69 cents to 72 cents in per-share earnings on
2% to 3% same-store sales growth.
Outlook targets were also boosted for full-year earnings.
Shares of TJX jumped 2.5% to $59 in after-hours trading. Through
Monday's close the stock has risen 36% in 2013, outperforming the
broader market's gain.
TJX said its investor-day event will also focus on long-term
store growth potential, with the most significant growth likely to
come from the Marmaxx division, which includes T.J. Maxx and
Marshalls.
The retailer on Monday also confirmed it is confident it can
boost earnings annually by 10% to 13% for each of the next three
years, growth that will come as it expands sales at existing
locations and builds more square footage.
Write to John Kell at john.kell@wsj.com
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