The TJX Cos. increased its full-year financial guidance while reporting first-quarter sales and earnings growth, with home and housewares making a significant contribution.
Net income was $1.33 billion, or $1.19 per diluted share, versus $1.04 million, or 92 cents per diluted share, in the year-prior period, the company reported.
An analyst consensus estimate from Zacks Investment Research was for diluted earnings per share of $1.01 and revenues of $14 billion.
Consolidated comparable sales gained 6%, with Marmaxx, including at T.J. Maxx and Marshalls, up 6%, HomeGoods up 9%, TJX Canada up 7%, and TJX International up 4%. Net sales were $14.32 billion, up from $13.11 billion in the year-before quarter, the company stated.
As for guidance, TJX raised its consolidated comparable sales outlook to up 3% to 4% and its diluted earnings per share outlook to $5.08 to $5.15. Previous TJX guidance called for a comp gain of 2% to 3% and a diluted earnings per share increase of $4.93 to $5.02.
John Klinger, TJX CFO, said in a conference call that driving the company’s first-quarter comp was, in equal measure, a higher average basket and an increase in customer transactions. Comps gained solidly in the apparel and home categories.
“HomeGoods saw strong comp sales increases across each of their region and income demographics,” Klingler said.
In announcing the financial results, Ernie Herrman, TJX president and CEO, said, “I am extremely pleased with our first quarter performance. Sales, pretax profit margin and earnings per share were all well above our plan. Throughout the quarter, our teams around the globe successfully executed on our off-price fundamentals to deliver on our value mission and offer an exciting treasure-hunt shopping experience to customers every day. All of our divisions delivered strong comparable sales growth and increases in customer transactions.
“With our above-plan first quarter results, we are raising our sales and profitability guidance for the full year,” Herman continued. “The second quarter is off to a good start, and we are excited about the initiatives we have planned to keep driving sales and attract consumers to our retail banners. Availability of quality, branded merchandise is outstanding, and we are well-positioned to take advantage of the plentiful buying opportunities we are seeing in the marketplace. Going forward, we are convinced that the flexibility and resiliency of our off-price business model will continue to be a tremendous advantage.”
