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 7.0% year over year in the five-week period
ended June 30, 2012. This rate of increase was higher than the
year-ago period's growth of 5%. As for total sales, it climbed 9.0%
in June 2012 to $2.3 billion from $2.1 billion in the year-ago
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Comparable sales for the year-to-date period climbed 8% from the
year-ago period. Total sales for the same period went up 10.0% year
over year to $10.0 billion.
Sales exceeded management's expectations on the back of strong
performance of all the stores in the U.S., Canada and Europe.
Further, well-chosen stocks at the stores consistently improved
customer traffic during the period.
As of June 30, 2012, The TJX Companies operated 1,006 T.J. Maxx,
892 Marshalls, and 393 HomeGoods stores in the U.S.; In Canada it
operated 220 Winners, 87 HomeSense, and 12 Marshalls stores; and
operated 337 T.K. Maxx and 24 HomeSense stores in Europe.
As of fiscal year 2012, The 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, 6 Marshall stores. It operated
342 T.K. Maxx and 24 HomeSense stores in Europe.
On the back of the strong sales performance in June, 2012, the
company raised its fiscal second quarter 2013 earnings guidance to
be in the range of 52 to 53 cents from the previously announced
guidance of a range of 47 to 50 cents. The guidance represents a
double-digit growth over second quarter fiscal 2012.
The company further raised its fiscal 2013 earnings guidance to a
range of $2.31 to $2.39 compared with previously announced guidance
of $2.27 to $2.37 per share. According to the Zacks Consensus
Estimate, earnings for second quarter fiscal 2013 are expected to
be 51 cents a share. The fiscal 2013 earnings are expected to be
TJX has been consistently reporting increased comparable store
sales for the past several quarters. This reflects increased
customer traffic and demand for the commodities in the company's
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 expenses
throughout its business.
Off price retailers like the TJX Companies are well positioned to
gain significantly during economic downturns, when consumers tend
to become more price-sensitive and prefer to buy discounted
However, its close competitor,
) reported 4.2% decline in comparable store sales for the five-week
period ended June 30, 2012. Total sales went down 2.6% to $1.7
Based in Framingham, Massachusetts, TJX Companies is a owns some
popular retail stores like T.J. Maxx, Marshalls, Homegoods,
Winners, Homesense and T.K. Maxx.
Currently, The TJX Companies carries a Zacks #2 Rank (short-term