The TJX Companies, Inc. 's
) adjusted earnings of 62 cents per share in the first quarter of
fiscal 2014 were ahead of the year ago quarter by 13%. Earnings
were in line with the higher end of management's guidance range
of 60 cents to 62 cents and with the Zacks Consensus
The earnings upside was fueled by higher consumer traffic on
the back of fresh stocks in the stores and solid comparable-store
sales growth for consecutive months.
Total net sales of this leading off-price retailer grew 7.0%
year over year to $6.2 billion in the reported quarter. Net sales
were roughly in line with the Zacks Consensus Estimate.
TJX Companies' consolidated comparable store sales increased
2.0% in the quarter compared to an 8% increase in the comparable
year ago quarter. The same store sales growth were driven by
same-store sales growth of 1% at Marmaxx, 7% at Home Goods, 4% at
TJX Europe. The growth however, was partly offset by a 1% decline
at TJX Canada.
Comparable-store sales grew on the back of strong customer
traffic driven by well-chosen stocks at the stores.
TJX Companies' gross margin expanded 0.2 percentage points
(pp) from the prior-year quarter to 28.4%. The margin expansion
was mostly driven by increased merchandise sales margin.
Selling, general and administrative costs as a percentage of
sales increased 0.3 pp year on year to 16.5% in the first
quarter, driven by increased marketing spending and the impact of
the company's e-commerce businesses.
During the first quarter 2013, the company spent a total of
$300 million to repurchase 6.5 million common shares.
For the fiscal 2014, the company narrowed its outlook and now
expects EPS in the range of $2.70 to $2.78 compared to a range of
$2.66 to $2.78 announced previously. The Zacks Consensus Estimate
for fiscal 2014 is $2.82, higher than the company's guidance
For the second quarter of 2014, the company expects earnings
per share in the range of 61 cents to 63 cents. The Zacks
Consensus Estimate for second quarter is pegged at 64 cents.
TJX currently holds a Zacks Rank #2 (Buy). Other stocks in the
retail and wholesale sector worth considering include
Stein Mart Inc.
) with a Zacks Rank #1 (Strong Buy),
) with a Zacks Rank #2 (Buy) and
The Buckle Inc.
) also with a Zacks Rank #2 (Buy).
BUCKLE INC (BKE): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
STEIN MART INC (SMRT): Free Stock Analysis
TJX COS INC NEW (TJX): Free Stock Analysis
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