By Melodie Warner
TJX Cos.' (TJX) fiscal first-quarter earnings rose 8% as the
discount retailer's same-store sales growth topped Wall Street
expectations.
The off-price seller of brand-name apparel and home furnishings
also raised the low end of its full-year earnings estimate by four
cents to a range of $2.70 to $2.78 a share. TJX estimated
current-quarter earnings at 61 cents to 63 cents a share, while
analysts surveyed by Thomson Reuters expect 63 cents.
The parent of T.J. Maxx, HomeGoods and Marshalls has seen
increased profits for more than a year as it continues to appeal to
budget-conscious consumers worried about rising gasoline prices and
a slow economic recovery.
Earlier this month, TJX raised its fiscal first-quarter guidance
as April same-store sales rose 7%, topping the 5% to 6% growth the
company projected. The company has since discontinued the reporting
of monthly sales, starting with its fiscal second quarter.
For the quarter ended May 4, TJX reported a profit of $452.9
million, or 62 cents a share, up from $419.2 million, or 55 cents a
share, a year earlier. Sales jumped 6.8% to $6.19 billion.
The company's May 9 forecast called for per-share earnings of 61
cents to 62 cents on sales of $6.2 billion.
Gross margin edged up to 28.4% from 28.2%.
Same-store sales rose 2%, compared with 8% growth a year
earlier. Analysts surveyed by Thomson Reuters were expecting a 1.8%
increase for the quarter.
In the U.S., the Marmaxx division--which combines T.J. Maxx and
Marshalls--posted a 1% same-store sales increase, while HomeGoods
posted 7% same-store sales growth.
Same-store sales at TJX Canada declined 1% while TJX Europe's
same-store sales were up 4%.
Total inventories as of May 4 rose to $3.1 billion from $2.9
billion a year earlier.
Shares were trading 1.2% lower at $50.75 premarket. The stock is
up 21% so far this year through Monday's close.
Write to Melodie Warner at melodie.warner@dowjones.com
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