TJX Cos.' (TJX) fiscal fourth-quarter earnings rose 42% as the
discount retailer's bargain-conscious shoppers continued to drive
sales growth.
The earnings report comes as the company's board authorized
repurchase of up to an additional $2 billion of stock. The current
buyback program has about $225 million remaining. For the current
fiscal year, it aims to repurchase $1.2 billion to $1.3 billion of
its stock.
TJX also plans to raise its quarterly dividend 21% to 11.5 cents
a share. The move requires board approval.
TJX--the parent of T.J. Maxx, HomeGoods and Marshalls--has
continued to appeal to budget-conscious consumers amid renewed
concerns about the economy. The latest results reflect its recent
two-for-one stock split.
"With favorable weather patterns in February, comp store sales
are trending toward a 7% increase for the month" said Chief
Executive Carol Meyrowitz. "Inventories are lean as we begin the
year, which positions us very well to flow fresh spring merchandise
to our stores."
For the quarter ended Jan. 28, TJX reported a profit of $475.3
million, or 62 cents a share, up from $334.4 million, or 42 cents a
share, a year earlier. The year-earlier period included 11 cents in
charges related to the closing of its A.J. Wright business.
Revenue increased 6% to $6.71 billion. Analysts polled by
Thomson Reuters most recently expected earnings of 62 cents and
revenue of $6.73 billion.
Gross margin was up at 27.2% from 26.3%.
The company recently reported that same-store sales rose 7%,
including 6% at its domestic Marmaxx unit and 10% at its U.S.
HomeGoods division.
For the new fiscal year, the company projected per-share
earnings of $2.21 to $2.31, while analysts expected $2.27.
For the current quarter, the company forecast per-share earnings
of 45 cents to 47 cents. Analysts recently forecast 46 cents.
Shares were up 18 cents at $35.40 in premarket trading. Through
Tuesday's close, the stock is up 42% in the past year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com