Framingham, Mass. While the industry continues struggling through a tight economy, TJX Cos. is battling to try to attract shoppers through its off-price banners. As bargain hunters cut back their spending, the chain reported Tuesday that this impacted its third-quarter profits.
TJX's net profit fell to $235.8 million for the third quarter ended Oct. 25, 2008. This is a drop from $249.5 million a year earlier.
On the upside, TJX Cos.’ net sales for the third quarter increased 2% to $4.8 billion.
Consolidated same-store sales fell 1% compared to the same timeframe last year. However, this metric was up 1%, excluding the impact of foreign currency exchange rates, compared to 2007.
“We are extremely focused on buying right and running with leaner-than-usual inventory levels, which has led to faster inventory turns and strong merchandise margins,” said Carol Meyrowitz, president and CEO, TJX Cos.
For example, the chain’s total inventories as of Oct. 25, was $3.3 billion, which is slightly lower than levels last year.