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TJX net income jumps 35% during Q3; raises full-year guidance

BY Dan Berthiaume

Framingham, Mass. — The TJX Companies reported better-than-expected net income of $622.6 million for the third quarter, up 35% million from $461.5 million in the year-ago period. The chain also raised its full-year guidance.

Net sales grew about 9% to $6.98 billion from $6.41 billion as bargain-hunting consumers flocked to its stores. Same-store sales rose 5%. The chain credited the ability of its off-price format to succeed in any economic environment as a key component of its strong quarterly performance.

“We believe these robust results demonstrate, once again, our ability to succeed in all types of economic and retail environments. We are raising our full-year guidance to reflect our third quarter performance,” said Carol Meyrowitz, CEO of TJX. “The fourth quarter is off to a good start and we see exciting opportunities for this holiday selling season: we have great initiatives planned and will be shipping fresh gift-giving selections to our stores throughout the holiday season. Longer term, we see tremendous potential ahead for TJX, and we remain very confident in our ability to continue driving substantial top- and bottom-line growth.”

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Best Buy braces for next quarter following Q3 results

BY CSA STAFF

Best Buy warned that its margins may take a hit this quarter in what is shaping up to be an extremely competitive environment, following third quarter results. The company posted a net income of $54 million for the quarter amid tight cost controls, compared to a net loss of $10 million during the same period a year earlier.

The chain posted revenue of $9.36 billion, which was flat with last year and below analyst expectations of $9.37 billion.

Same-store sales rose 0.3%, including a 1.7% increase in the U.S. and 6.4% decline internationally. Online sales rose 15.1% during the quarter.

Best Buy said it has cut costs, increased employee training and matched competitors’ online prices to sustain store traffic, but increased markdowns and store hours during the holiday season may impact fourth quarter results. Annualized costs have been reduced $505 million in the past 12 months, contributing to earnings.

“Our third quarter top-line results make it clear that our focus on delivering our unique customer promises is starting to pay off,” said president and CEO Hubert Joly. ”It is also clear that our efforts to control costs and to bring greater efficiency to our operations are improving our profitability. While we remain mindful of the fact that we still have a long way to go, we are pleased with the progress of our Renew Blue transformation efforts.”

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Best Buy beats Street, swings to Q3 profit

BY Dan Berthiaume

Minneapolis — Best Buy reported net income of $54 million during the third quarter amid tight cost controls, compared to a net loss of $10 million during the same period a year earlier, beating analyst predictions for a more modest net income. The chain also warned that its margins may take a hit this quarter in what is shaping up an extremely promotional environment.

The chain posted revenue of $9.36 billion, which was flat with last year and below analyst expectations of $9.37 billion.

Same-store sales rose 0.3%, including a 1.7% increase in the U.S. and 6.4% decline internationally. Online sales rose 15.1% during the quarter.

Best Buy said it has cut costs, increased employee training and matched competitors’ online prices to sustain store traffic, but increased markdowns and store hours during the holiday season may impact fourth quarter results. Annualized costs have been reduced $505 million in the past 12 months, contributing to earnings.

“Our third quarter top-line results make it clear that our focus on delivering our unique customer promises is starting to pay off,” said Hubert Joly, president and CEO of Best Buy. ”It is also clear that our efforts to control costs and to bring greater efficiency to our operations are improving our profitability. While we remain mindful of the fact that we still have a long way to go, we are pleased with the progress of our Renew Blue transformation efforts.”

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