TJX reports June sales, raises outlook
TJX Cos., one of the few retailers that has performed well during the recession, reported that same-store sales rose 3 percent in June when compared with the same month last year and added that it is raising its guidance for its second quarter.
Headquartered in Framingham, TJX operates such offprice chains as T.J. Maxx, Marshalls, HomeGoods, and A.J. Wright. During recent hard times, many consumers changed their shopping habits to look for value, and that trend has benefitted TJX and other retailers seen as offering lower prices than other stores.
Wall Street deems same-store sales - or consolidated comparable store sales, as TJX calls them - as a key barometer of a retailer's health. Same-store sales are sales from stores open at least a year. Results from stores that have either opened or closed during the last 12 months are not included in same-store sales.
In a press release, TJX said its comparable store sales were "solidly within our estimated range."
According to Thomson Reuters, though, analysts had been expecting same-store gains of 4.2 percent.
TJX's press release added: "For the second quarter of Fiscal 2011, the company's raised guidance of $.70 - $.73 in earnings per share would represent an increase of 15 percent - 20 percent over $.61 per share last year. With this updated outlook for the second quarter, the company is raising its guidance for full year Fiscal 2011 earnings per share to the range of $3.24 - $3.33, up an estimated 14 percent - 17 percent over $2.84 in Fiscal 2010."
Total sales for the five-week period that ended July 3 were $2 billion, up 7 percent from the comparable five-week period in 2009.
In a statement, TJX president and chief executive Carol Meyrowitz said: "Consolidated comparable store sales were solidly within our estimated range and the Marmaxx Group reported a comp sales increase at the high end of our forecast. It is important to note that these comp sales increases were achieved on top of our strong increases last year when many other retailers had sharp comp sales declines. Further, business continued to be driven by increases in customer traffic which led to the sustained strength that our June sales represent."