Bargain-obsessed shoppers lift TJX
TJX continues to grow same store sales and earnings as a result of the retailer's irresistible value proposition to bargain hunters.
TJX also continues to be one of the few retailers largely unaffected by e-commerce due to its "treasure hunt" model, which tempts shoppers to hunt for deals on products or brands that would otherwise be out of reach.
“We are very pleased with our first quarter results as both our consolidated comp store sales growth of 3% and earnings per share exceeded our expectations," said Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc. "Marmaxx, our largest division, delivered a strong 4% comparable store sales increase as consumers were drawn to our great fashions and brands at outstanding values! Customer traffic was once again the primary driver of our comparable store sales increases at each of our four large divisions. Based on our strong first quarter performance, we are updating our outlook for full-year earnings per share. We believe that the consistency of our customer traffic increases demonstrates the strength and resiliency of our business and our ability to succeed through many types of economic and retail environments. Looking ahead, the second quarter is off to a strong start and we see plentiful opportunities to capitalize on the exciting fashions and brands available to us in the marketplace. We are convinced that we will continue to gain market share and grow successfully around the world.”
TJX reported a 3 percent rise in same store sales for the first quarter, compared with the 2.5 percent increase most Wall Street analysts had expected, marking the seventh time in nine quarters the company has beat estimates.
The company also raised its full-year adjusted profit forecast to $4.04 to $4.10 per share, from $4.00 to $4.08.
The company's net income soared 33.6 percent to $716.4 million, or $1.13 per share, in the quarter ended May 5, from a year earlier.
The Massachusetts-based company posted an 11.6 percent rise in net sales to $8.69 billion.
During the first quarter ended May 5, the company increased its store count by 71 stores to a total of 4,141 stores. The company increased square footage by 5% over the same period last year.