The TJX Cos. (TJX), the parent of off-price retailers TJ Maxx and Marshalls, on Tuesday raised its full-year earnings guidance after its fiscal-third quarter results beat expectations.
Framingham, Mass.-based TJX expects full-year per-share earnings to come in between $2.61 and $2.63, up from its prior outlook for $2.56 to $2.61. The consensus compiled by Capital IQ is for $2.61.
For the quarter ended Nov. 2, sales rose to $10.45 billion from $9.83 billion in the prior-year period and above the Street’s view for $10.31 billion. Diluted EPS rose to $0.68 from $0.61 last year, higher than the $0.66 expected by the Street.
Comparable-store sales rose 4%, above the Street’s forecast for 2.3%.
“We are extremely pleased with our strong performance in the third quarter as both sales and earnings per share exceeded our expectations,” said Chief Executive Ernie Herman.
Net sales at Marmaxx, its US division that includes TJ Maxx and Marshalls rose to $6.35 billion from $5.97 billion the year before, but comps slowed to 4% growth from 9%. HomeGoods US comps slid to a 1% gain from 7% as net sales rose to $1.58 billion from $1.46 billion.
TJX Canada comps grew 2%, under the 5% rise the year before, as net sales edged up to $1.08 billion from $1.04 billion. TJX International net sales were $1.43 billion, up from $1.35 billon as comps rose 6% from 3% last year.
Herman said the current quarter “is off to a solid start,” saying the company expects diluted EPS of $0.74 to $0.76. But that was a penny under the Street’s view for the period.