The TJX Cos. posted better-than-expected financial results in the second quarter as its home product business rebounded.
A second quarter analyst consensus estimate published by Yahoo Finance called for earnings per diluted share of 77 cents and revenues of $12.45 billion.
Overall comparable sales increased 6% year over year in the quarter. Comps at Marmaxx, the segment that includes the T.J. Maxx and Marshalls operations, gained 8% and those at HomeGoods advanced 4% from the period a year earlier while comps at TJX Canada increased 1% and those at TJX International increased 3%.
Net sales were $12.76 billion, an increase of 8% versus quarter a year earlier.
In a conference call, Ernie Herrman, TJX president and CEO, said, customer traffic gains helped drive results while home product sales rebounded in the second quarter.
Herrman added, “The third quarter is off to a very strong start, and we feel great about our plans for the remainder of the year. The marketplace is loaded with outstanding buying opportunities, and we are confident we will continue to offer a terrific mix of brands and an outstanding assortment of gifts to our shopper during the fall and holiday selling seasons.”
On second-quarter results, Herrman, said, “I am extremely pleased with our second quarter performance. Our comparable store sales increase of 6%, pretax profit margin, and earnings per share all significantly exceeded our plans. Our overall comp sales growth was driven by customer traffic, which increased at every division. It was terrific to see Marmaxx, our largest division, drive an 8% comp sales increase. Our overall apparel and accessories sales were very strong. Overall home sales significantly improved and returned to positive comp sales growth, with HomeGoods posting a 4% comp sales increase. TJX Canada and TJX International also both delivered comp sales growth and customer traffic increases. With our above-plan results, we are raising our full-year outlook for comparable store sales, pretax profit margin, and earnings per share.”
He added, “We are in an outstanding position to continue shipping fresh and compelling merchandise to our stores and online throughout the fall and holiday selling seasons. Going forward, we continue to see excellent opportunities to grow sales and customer traffic, capture market share and drive the profitability of our company.”
