TJX raises 4th-quarter and full-year profit outlook as key December sales figure climbs 14 pct

TJX lifts profit outlook as December sales jump

FRAMINGHAM, Mass. — Discount clothing and home products retailer TJX Cos. sharply raised its fourth-quarter and fiscal 2010 earnings outlook on Thursday as it reported a 14 percent jump in a key December sales figure.

The results of TJX, which operates T.J. Maxx, Marshalls, HomeGoods and other stores, handily beat the expectations of analysts, who had forecast only a 5.6 percent increase in December sales at stores open at least a year. This figure is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

President and CEO Carol Meyrowitz said the company is pleased with its results and anticipates people will keep shopping with value in mind, which will bring them into TJX stores even after the recession ends.

Shares jumped $2.40, or 6.5 percent, to $39.56 in morning trading Thursday.

TJX said total sales for the five weeks ended Jan. 2 climbed 21 percent to $2.9 billion with sales higher across all divisions and regions. So far this year, revenue is up 8 percent to $19 billion, while sales at stores open at least a year are up 6 percent.

The retailer raised its forecast for fourth-quarter earnings from continuing operations to a range of 82 cents to 84 cents, from 65 cents to 71 cents previously. The midpoint of the company’s new range is well above analysts’ average estimate of 73 cents per share.

The company now expects to repurchase between $900 million and $1 billion of its stock in fiscal 2010, up from prior plans to buy back $625 million worth of stock. The company said this move will benefit fourth-quarter earnings per share by a penny, which is reflected in the guidance.

TJX also raised its outlook for fiscal 2010 earnings to $2.72 to $2.74 a share from $2.55 to $2.61. Analysts have forecast earnings of $2.63 per share, on average.