TJX key sales figure climbs in March, boosts 1st-quarter and full-year profit forecasts

TJX posts higher March sales, raises forecasts

FRAMINGHAM, Mass. — The owner of T.J. Maxx, Marshalls and other discount stores says sales at stores open at least a year climbed 12 percent in March, helped by better traffic, warmer weather and the Easter holiday shift.

Strong quarter-to-date results also prompted TJX Cos. to boost its fiscal first-quarter and full-year earnings expectations Thursday.

The retailer’s stock gained 98 cents, or 2 percent, to $45.60 in premarket trading. Over the past year, the shares have traded between $25.91 and $44.95.

Unlike many retailers, TJX managed to pull in shoppers during the economic downturn, when consumers worried about their jobs and looking to conserve cash flocked to its stores for value-priced items.

TJX — known for selling designer brands at a discount — has logged sales and profit gains in the weak economy — a stark contrast to many of its full-priced competitors, which have experienced stagnant or falling sales.

Its March same-store sales increase was higher than Wall Street expected, as analysts polled by Thomson Reuters predicted a much smaller 6.5 percent rise.

This same-store sales figure is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

Total sales for the five weeks ended April 3 grew 19 percent to $2 billion.

Year-to-date sales at stores open at least a year rose 11 percent, while total sales increased 18 percent to $3.4 billion.

TJX now anticipates a profit of 76 cents to 79 cents for the first quarter and earnings between $3.17 and $3.31 per share for the full year. It previously projected earnings of 60 cents to 65 cents per share for the first quarter and $3.06 to $3.20 for the year.

Analysts predict a first-quarter profit of 65 cents per share and full-year earnings of $3.18 per share.

TJX runs 893 T.J. Maxx, 817 Marshalls, 325 HomeGoods, and 151 A.J. Wright stores in the U.S. It has 208 Winners, 79 HomeSense and 3 Stylesense stores in Canada and 271 T.K. Maxx and 14 HomeSense stores in Europe.