Consolidated same-store sales at The
TJX Companies Inc.
), an off-price retailer of apparel and home fashions in the U.S.
and worldwide, climbed 8.0% year over year in the four-week period
ended August 25, 2012. This rate of increase was in line with the
year-ago period's growth. As for total sales, it climbed 10.0% for
the aforementioned period to $1.9 billion from $1.7 billion in the
As for the 30-week period ended August 25, 2012, comparable sales
climbed 8% from the year-ago period. Total sales for the same
period went up 10.0% year over year to $12.4 billion.
Sales exceeded management's expectations on the back of higher
customer traffic in U.S., Canada and Europe divisions. Marmaxx
Group, the company's largest division reported consolidated
comparable store sales growth of 9% during the four-week period
ended August 25, 2012.
As of August 25, 2012, TJX Companies operated 1,010 T.J. Maxx, 900
Marshalls, and 399 HomeGoods stores in the U.S. In Canada it
operated 222 Winners, 87 HomeSense, and 13 Marshalls stores. The
company operated 339 T.K. Maxx and 24 HomeSense stores in Europe.
As of fiscal year 2012, TJX Companies operated 983 T.J. Maxx, 884
Marshalls, and 374 HomeGoods stores in the U.S. In Canada it
operated 216 Winners, 86 HomeSense and 6 Marshall stores. It
operated 342 T.K. Maxx and 24 HomeSense stores in Europe.
On the back of the strong sales performance in August 2012, the
company raised its fiscal third quarter 2013 earnings guidance to
be at the higher end of the previously-announced range of 56 to 59
TJX Companies has been consistently reporting an increase in
comparable store sales for the past several quarters. This reflects
its increased customer traffic and demand for the commodities in
the company's stores.
We are encouraged by the company's flexible off-price business
model that is allowing it to react according to market trends. TJX
Companies has a low-cost structure compared to many other
traditional retailers. It focuses aggressively on reducing expenses
across its segments.
Its close competitor,
) reported a 3.4% increase in comparable store sales for the
four-week period ended August 25, 2012. Total sales went up 5.3% to
Based in Framingham, Massachusetts, TJX Companies owns some popular
retail stores like T.J. Maxx, Marshalls, Homegoods, Winners,
Homesense and T.K. Maxx. The TJX Companies carries a Zacks #2 Rank
(short-term Buy rating).
KOHLS CORP (KSS): Free Stock Analysis Report
TJX COS INC NEW (TJX): Free Stock Analysis
To read this article on Zacks.com click here.