FINANCE

TJX Q2 profit up; raises outlook

BY Marianne Wilson

Framingham, Mass. — TJX Cos. said Tuesday that its second-quarter net income increased a better-than-expected 8% on strong sales in the United States and abroad. The retailer also lifted its full-year earnings forecast.

TJX earned $517.6 million for the period ended Aug. 2, compared with $479.6 million a year earlier.

Revenue rose 7% to $6.92 billion from $6.44 billion, beating Wall Street’s estimate of $6.88 billion.

Same-store sales rose 3%. In the U.S., same-store sales increased 2% at T.J. Maxx and Marshalls stores and 5% for HomeGoods locations. Same-store sales at TJX Canada rose 3%. The metric rose 6% for TJX Europe.

"Our customer traffic gained momentum throughout the quarter, and was positive in July," Carol Meyrowitz, CEO, said in a statement. "Further, we are pleased with our solid merchandise margins as well as the improved performance of our apparel businesses. We are now raising our full year adjusted earnings per share guidance to reflect our above-plan second quarter results. The third quarter is off to a solid start and we are excited about our opportunities for the second half of the year.”

Going forward, TJX now anticipates fiscal 2015 earnings of $3.08 to $3.16 per share, and an adjusted profit of $3.10 to $3.18 per share. Its prior outlook was for earnings of $3.05 to $3.17 per share.

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FINANCE

Dick’s Sporting Goods Q2 profit slides due to weak golf sales

BY Marianne Wilson

New York — Dick’s Sporting Goods reported second quarter net income of $69.5 million, below expectations, compared to $84.2 million the prior year. Its results included a $20.4 million charge related to restructuring of the company’s golf business,

The retailer reported $1.7 billion in revenue, up 10.3% from the same period last year and in line with estimates. E-commerce sales increased to 6.3% of sales, from 5.6% of sales the prior year.

Same-store sales increased 3.2%, better than expected, with sales up 4.1% at Dicks and down 9.3% at Golf Galaxy.

“As anticipated, the golf and hunting businesses continued to experience negative comps,” said CEO Edward Stack in a statement noting that without these categories the business would have delivered a 7.8% same store sales increase. “We saw significant strength in several areas, including categories that have received more space within our stores, such as women’s and youth athletic apparel.”

Stack noted the company has consolidated its Golf Galaxy merchandising, marketing and store operations into Dick’s Sporting Goods.

“In addition, we have eliminated specific staff in our golf area within our Dick’s Sporting Goods stores,” he said. “These changes are necessitated by the current and expected trends in golf. We will invest these cost savings into other aspects of our store operations and into the growth areas of our business."

One of those areas is the company’s newest concept known as Field & Stream. One of the new outdoor stores was opened in the second quarter, but seven additional locations are planned for the third quarter.

In the third quarter, Dick’s expects to open approximately 24 namesake stores, seven Field & Stream stores and one Golf Galaxy store.

Dick’s ended the second quarter with 574 Dick’s Sporting Goods stores and 85 Golf Galaxy stores.

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OPERATIONS

GameStop CEO treated for brain cancer

BY Staff Writer

New York — GameStop Corp. said CEO Paul Raines had unexpected surgery last week for a small cancerous brain tumor.

Raines, who will be undergoing chemotherapy, will restrict his travel during the expected six weeks of treatment, the company said in a regulatory filing on Tuesday.

GameStop said the treatment period would not interfere with Raines’ "continued leadership" of the company.

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