TJX 3rd-quarter net income rises 9 percent
FRAMINGHAM, Mass. — The TJX Cos. said Tuesday that its third-quarter net income rose 9 percent as consumers continued to look for bargains at its off-price stores, including Marshalls and T.J. Maxx.
TJX has carved a niche for itself, offering discounted clothing and home merchandise at its stores.
CEO Carol Meyrowitz sounded a positive note on the holiday season.
"Although it's still early, November is off to a strong start," she said. The company plans to ship new gift sets into stores throughout the season and ramp up marketing for the holidays, she said.
Net income for the quarter ending rose to $406.5 million, or $1.06 per share, from $372.3 million, or 92 cents per share, last year.
Revenue rose 5 percent to $5.79 billion from $5.53 billion last year.
Analysts surveyed by FactSet expected net income of $1.05 per share on revenue of $5.84 billion.
Revenue in stores open at least one year rose 3 percent. The measure is considered a key gauge of a retailer's financial health because it excludes results from stores that open or close during the year.
The measure rose 4 percent at the company's T.J. Maxx and Marshalls stores and 5 percent at its HomeGoods stores.
The Framingham, Mass.-based company reiterated its guidance for fourth-quarter net income of $1.19 to $1.23 per share, and offered an estimate for annual adjusted earnings of $3.93 to $3.97 per share.
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Analysts expect $1.23 per share for the fourth quarter and $3.96 per share for the year.
TJX said it now expects revenue in stores open at least one year will rise 2 percent to 3 percent in the fourth quarter, from a prior range of 1 percent to 2 percent. But the company said that will be offset by a higher tax rate and unfavorable foreign currency exchange.