Off-price giant runs strong in Q1
TJX Companies reported first-quarter sales and earnings that beat estimates amid increases in customer traffic across its four major divisions.
Net income totaled $700.2 million, or 57 cents per share, for the quarter ended May 4, down from $716.4 million, or 56 cents per share, last year. Analysts had expected earnings per share of 55 cents.
TJX said that its revenue rose 7% to $9.28 billion from $8.69 billion last year. Analysts had expected revenue of $9.22 billion.
Same-store sales rose 5%, easily beating expectations. By brand, same-store sales rose 6% at Marmaxx (U.S., includes T.J. Maxx and Marshalls) and 8% at TJX International (Europe and Australia). Comp sales inched up 1% at Home Goods.
In a statement, TJX CEO Ernie Herrman highlighted the “continued strength” of the company’s largest division, Marmaxx, whose apparel and home categories were both very strong.
“Once again this quarter, customer traffic was the primary driver of our consolidated comp increase and was up at each of our four major divisions,” he added. “We believe this is a great indicator of the enduring appeal of our great values on an eclectic and exciting mix of merchandise and our treasure-hunt shopping experience, as well as the resiliency of our off-price retail model.”
Given its above-plan first quarter results, TJX said it was raising its full-year earnings per share outlook.
“We are in an excellent position to take advantage of the abundant buying opportunities we are seeing in the marketplace for quality, branded merchandise and to keep flowing fresh, exciting assortments to our stores and online,” Herrman said.
As of May 4, 2019, TJX operated a total of 4,381 stores in nine countries, the United States, Canada, the United Kingdom, Ireland, Germany, Poland, Austria, the Netherlands, and Australia, and three e-commerce sites. These include 1,257 T.J. Maxx, 1,102 Marshalls, 770 HomeGoods, 39 Sierra, and 22 Homesense stores in the United States; 273 Winners, 132 Homesense, and 91 Marshalls stores in Canada; 575 T.K. Maxx and 72 Homesense stores in Europe; and 48 T.K. Maxx stores in Australia.
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