TJX's Dec same-store sales fall less than expected
(File photo: Stephan Savoia/AP)
TJX Cos., the off-price apparel and home goods retailer headquartered in Framingham, said today that its same-store sales fell 5 percent in December as the stronger US dollar hurt international sales, but results were better than expected.
Analysts polled by Thomson Reuters had expected the operator of such chains as T.J. Maxx, Marshalls, HomeGoods, and A.J. Wright to report a larger decline of 7.9 percent. On a constant currency basis, TJX said same-store sales for the five weeks ended Jan. 3 were flat.
Same-store sales, or sales at stores open at least a year, are a key indicator of retailer performance since they measure growth at existing stores rather than newly opened ones.
Total sales for the month fell 3 percent to $2.37 billion from $2.43 billion. Year-to-date, total sales are up 2 percent to $17.7 billion, though same-store sales have declined 1 percent.
The company said customer traffic was strong leading up to the holidays, despite severe weather in many parts of the United States. But citing soft November and December results, TJX again lowered its fourth-quarter and fiscal year profit outlook.
Looking ahead, TJX said it expects January same-store sales to fall 2 percent to 5 percent, excluding an anticipated 5 percentage-point drop related to foreign exchange rates.
The company now sees fourth-quarter earnings from continuing operations of 48 cents to 52 cents per share, compared with prior revised estimates of 58 cents to 62 cents per share. Fiscal 2009 earnings from continuing operations, excluding one-time items, are now forecast between $1.93 and $1.97 per share, down from the company's previously revised guidance of $2.04 to $2.08.
Both midpoints fall below analysts' average forecast of 58 cents per share for the quarter and $2.04 per share for the year. To read TJX's press release, please click here. (AP)
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