Consolidated same-store sales at
The TJX Companies Inc.
), an off-price retailer of apparel and home fashions, climbed 6.0%
year over year in the five-week period ended September 29, 2012.
This compares favorably with the 4.0% increase in same-store sales
in the year-ago period. As for total sales, it climbed 10.0% year
over year for the aforementioned period to $2.5 billion.
As for the 35-week period ended September 29, 2012, comparable
sales climbed 8% from the year-ago period. Total sales for the same
period went up 10.0% year over year to $16.1 billion.
Comparable sales jumped again on the back of higher customer
traffic in the U.S., Canada and Europe divisions. Marmaxx Group,
the company's largest division reported consolidated comparable
store sales growth of 6% during the five-week period ended
September 29, 2012, whereas TJX Europe delivered a growth of 13%
for the same time period despite economic uncertainties in the
With strong September comparable store sales and expectation of
a solid holiday season ahead, TJX was expected to raise its
earnings guidance for the third quarter of fiscal 2013. However,
the company revealed a correction to its pension accrual for prior
fiscal years, which would result in a one-time charge of 2 cents in
the third quarter. TJX thus reiterated its previous earnings
guidance at the higher end of the range of 56 to 59 cents per
As of September 29, 2012, TJX Companies operated 1,018 T.J.
Maxx, 904 Marshalls, and 409 HomeGoods stores in the U.S. In
Canada, it operated 222 Winners, 87 HomeSense, and 13 Marshalls
stores. The company operated 341 T.K. Maxx and 24 HomeSense stores
TJX has been reporting an increase in comparable store sales for
the past several quarters driven by higher demand and increased
We are encouraged by the company's flexible off-price business
model that is allowing it to act according to market trends. TJX
has a low-cost structure compared to many other traditional
retailers. It focuses aggressively on reducing expenses across its
Its close competitor,
) reported a 2.7% decline in comparable store sales for the
five-week period ended September 29, 2012. Total sales also plunged
1.4% to $1.61 billion.
The TJX Companies carries a Zacks #2 Rank (short-term Buy
rating). Over the long-term, the stock has a Neutral
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