TJX Reports Third Quarter $0.91 Per Share Vs $0.84 Last Year

Ernie Herman, CEO and president of TJX companies stated: “I am very pleased with our third quarter performance. U.S. companies store sales exceeded our expectations, and overall pretax margins, merchandise margins and earnings per share were strong. I am particularly pleased about our apparel business.”

On the day when TargetTGT
Store’s results dragged down most other stocks, TJX’s results stood out like a beacon of light. Herman spoke about major factors that helped TJX in the quarter and will help them to gain strong holiday business. They include:

1. Great values

2. Branded merchandise growth

3. Replenish merchandise several times during the week

4. Plenty of good, better and best merchandise available

5. 1100 buyers in global market to find new branded merchandise

6. 2100 vendors from over 100 countries

7. Strong marketing campaign for holidays

8. Strong comprehensive marketing plans for companies to stand out

9. Well positioned to gain additional market share

10.There is store growth potential around the world

11.Expects 10.6% pre-tax margins by fiscal 2025

12.Overall headwind for freight-costs will moderate

13.Company assumes that they will return to low single-digit increases

in each of the next two years.

For this year the guidance for comparable store sales to be down 1-2% versus previous guidance of 2-3%. Fir the full year the company plans TJX sales to be between $49.3 and $49.5 billion. Unfavorable exchange rates will negatively impact the fourth quarter. Management expects pre-tax margins to be between 98% and 9.9%. Earnings per share are expected to be in the range of $3.07 and $3.11 a share.

POSTSCRIPT: Company is optimistic about their fourth quarter. It is likely that shoppers will try to save money by shopping in TJX stores. Mr. Herman stresses that store associates will give better service than ever, and that he expects customers to flock to his stores. The inventory is under tight control and gives management to take advantage of special value buys.