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 four-week period
ended July 28, 2012. This rate of increase was higher than the
year-ago period's growth of 4%. As for total sales, it climbed 8.0%
in four weeks ended on July 28, 2012 to $1.8 billion from $1.6
billion in the year-ago period.
As for the 26-week period ended July 28, 2012, comparable sales
climbed 8% from the year-ago period. Total sales for the same
period went up 10.0% year over year to $11.8 billion.
Sales exceeded management's expectations on the back of higher
customer traffic in all of its stores. Further, a comfortable
inventory position is allowing the company to maintain fresh stocks
in its stores and offer them at an attractive value.
As of July 28, 2012, The TJX Companies operated 1,005 T.J. Maxx,
891 Marshalls, and 393 HomeGoods stores in the U.S. In Canada it
operated 220 Winners, 87 HomeSense, and 12 Marshalls stores. The
company operated 338 T.K. Maxx and 24 HomeSense stores in
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 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 July 2012, the
company raised its fiscal second quarter 2013 earnings guidance to
55 cents from the previously announced guidance range of 52 to 53
cents. The guidance represents a double-digit growth over second
quarter fiscal 2012 result.
The company further raised its fiscal 2013 earnings guidance to
a range of $2.38 to $2.44 compared with previously announced
guidance of $2.31 to $2.39 per share. According to the Zacks
Consensus Estimate, earnings for second quarter fiscal 2013 are
expected to be 55 cents a share. The fiscal 2013 earnings are
expected to be $2.45.
TJX Companies 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
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 TJX Companies are well positioned to
gain significantly during economic downturns, when consumers tend
to become more price-sensitive and prefer to buy discounted
Its close competitor,
) reported a 1.7% increase in comparable store sales for the
four-week period ended July 30, 2012. Total sales went up 3.4% to
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. The TJX Companies carries a Zacks
#2 Rank (short-term Buy rating).
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