TJX 2Q Profit Rises, Boosts Full-Year Outlook

TJX said Tuesday that its second-quarter net income climbed 8 percent as sales strengthened in the U.S. and abroad.

The results for the parent company of T.J. Maxx, Marshalls and other stores topped Wall Street’s view. TJX also lifted its full-year earnings forecast, citing its better-than-expected second-quarter performance.

TJX earned $517.6 million, or 73 cents per share, for the period ended Aug. 2. That compares with $479.6 million, or 66 cents per share, a year earlier.

Removing a debt-extinguishment charge, earnings were 75 cents per share. Analysts, on average, had expected earnings of 73 cents per share, according to a FactSet survey.

Revenue for the Framingham, Massachusetts, company increased 7 percent, to $6.92 billion from $6.44 billion, beating Wall Street’s estimate of $6.88 billion.

Shares of TJX Cos. added $4.66, or 8.7 percent, to $58.56 in trading Tuesday.

Sales at stores open at least a year rose 3 percent in the quarter. In the U.S., sales at T.J. Maxx and Marshalls locations open at least a year climbed 2 percent. The metric increased 5 percent for HomeGoods locations in the U.S. Internationally, sales at TJX Canada locations open at least a year rose 3 percent. The figure increased 6 percent for TJX Europe.

Sales at stores open at least a year is a key indicator of a retailer’s health because it excludes results from stores recently opened or closed.

Going forward, TJX now anticipates fiscal 2015 earnings of $3.08 to $3.16 per share, and an adjusted profit of $3.10 to $3.18 per share. Its prior outlook was for earnings of $3.05 to $3.17 per share.

The retailer expects third-quarter earnings 81 cents to 85 cents per share.

Analysts foresee full-year earnings of $3.14 per share and third-quarter earnings of 85 cents per share.

This article appeared in print in the August 20th, 2014 edition of Hamodia.