TJX says 2nd-quarter profit climbs almost 17 percent as sales, customer traffic rise

TJX 2Q profit up nearly 17 percent as sales climb

FRAMINGHAM, Mass. — More customers shopped TJX Cos. stores for discounted clothing and housewares, the company said Tuesday, helping its second-quarter sales rise and net income grow nearly 17 percent.

The company that owns the T.J. Maxx, Marshalls and HomeGoods chains also raised its full-year outlook, offering 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.

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. And revenue from locations open at least a year — considered a key comparison because it excludes stores that open or close during the year — rose 3 percent.

“We drove … results in both strong and weak retail climates, which points to our consistency and ability to grow … in various economic environments,” TJX President and CEO Carol Meyrowitz told investors during a conference call.

The company, based in Framingham, Mass., said its net income was $305 million, or 74 cents per share. That’s up from $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.

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 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, up from $2.84 the year before.

Analysts expect a full-year profit of $3.37 per share, on average.

For the third quarter, TJX forecast earnings between 86 cents and 91 cents per share, compared with analysts’ 89-cent estimate.

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

TJX shares climbed 41 cents, or 1 percent, to close at $41.78 Tuesday.