TJX says 2nd-quarter profit climbs 16 percent as sales, customer traffic rise

TJX profit up 16 pct as sales climb

FRAMINGHAM, Mass. — TJX Cos. Inc. said Tuesday that its second-quarter net income rose more than 16 percent as sales climbed and more customers came to its stores seeking its deeply discounted clothing and housewares.

The company that owns T.J. Maxx, Marshalls and HomeGoods said its net income was $305 million, or 74 cents per share. That’s up from net income of $261.6 million, or 61 cents per share, in the quarter a year earlier.

Excluding one-time items, TJX earned 73 cents per share during the most recent period.

Revenue climbed more than 6 percent to $5.07 billion, up from $4.75 billion.

It was the yet another quarter of stark contrast between TJX and many of its full-price competitors, whose sales have fallen or stagnated as the economy continues to sputter.

The results also topped the expectation of analysts surveyed by Thomson Reuters for a profit of 73 cents per share with revenue of $5.11 billion. Analysts typically exclude one-time items.

TJX President and CEO Carol Meyrowitz said customer traffic “continued to increase significantly” during the quarter as more shoppers gave up shopping at high-priced retailers to seek designer brands at deep discounts at stores run by TJX.

“We believe this speaks to the strength of our business model and our ability to drive profitable growth regardless of the economic environment,” she said in a statement.

Also Tuesday, TJX boosted its full-year outlook, saying it now expects to earn $3.28 to $3.38 per share. It previously expected to earn $3.24 to $3.33 per share for the year.

Last year, TJX earned $2.84 and analysts expect a full-year profit of $3.37 per share.

For the third quarter, TJX said it expects to earn between 86 cents and 91 cents per share. Analysts are looking for a profit of 89 cents.

Based in Framingham, Mass., TJX has about 2,700 stores in the U.S., Canada and Europe.

Its shares dipped 3 cents to $41.34 in pre-market trading Tuesday. They closed Monday at $41.37.