TJX 2Q results beat, lifts 2013 profit forecast
The Framingham-based parent company of T.J. Maxx and Marshalls clothing stores saw net income rise 14 percent during the second quarter, with savvy shoppers continuing to flock to its stores for discounts on designer goods and other wares.
TJX Cos. beat Wall Street expectations, and the company boosted its profit outlook for the year.
Shares jumped more than 5 percent in midday trading.
TJX is one of the few retailers to post strong quarterly results this earnings season. Wal-Mart Stores Inc. and Macy’s Inc. fell short expectations and lowered their forecasts last week. J.C. Penney reported another huge quarterly loss Tuesday.
TJX earned $479.6 million, or 66 cents per share, in the most recent period. That’s up from $421.1 million, or 56 cents per share, in the same quarter last year.
Analysts expected earnings of 63 cents per share, according to a FactSet survey.
Revenue rose 8 percent to $6.44 billion from $5.95 billion, above Wall Street’s estimate of $6.37 billion.
Revenue at stores open at least a year climbed 4 percent, with the strongest increases in its European stores and its HomeGoods chain. This metric is a key indicator of a retailer’s health because it excludes results from stores recently opened or closed.
One other retailer posting earnings Tuesday was Home Depot, which topped most expectations. An emerging trend suggests that suggests Americans are starting to spend money again as the recession fades in the distance, but they appear to be less willing to spend as freely as they did in the past on clothing and other items, instead holding out for sales and hitting up discount stores and outlets.
For the year, which runs through January, TJX now expects a profit of $2.74 to $2.80 per share. Previously the company predicted earnings between $2.70 and $2.78 per share. Analysts forecast earnings of $2.82 per share.
For the current quarter, TJX expects earnings of 69 to 72 cents per share, bracketing Wall Street’s 71 cent view.
The retailer runs 1,052 T.J. Maxx, 914 Marshalls, and 430 HomeGoods stores in the US. It also operates hundreds of stores in Canada and Europe.
Shares of TJX rose $2.82, or 5.6 percent, to $53.57. Over the past year, the stock has traded in a range of $40.08 to $54.29.