The TJX Cos. Inc. reported lower third-quarter profits and reduced full-year projections even as the company said Tuesday it would aggressively pursue merchandise and store locations in the weakened retail climate.
TJX buys excess inventory from vendors and other retailers and sells it at a discount. And just as the company takes advantage of the excess inventory in the industry, Carol Meyrowitz, president and chief executive officer, said TJX would also use its financial might to buy real estate that opens up as other businesses fail.
But the hard times, which have stores across the price spectrum moving to clear goods earlier, are also weighing on the Framingham, Mass.-based firm. Net income for the quarter fell 5.5 percent to $235.8 million from $249.5 million a year ago and earnings per diluted share were flat at 54 cents because of fewer shares outstanding. The discontinued Bob’s Store division, which TJX sold to Versa Capital Management and Crystal Capital in August, recorded aftertax losses of $18.3 million, or 4 cents a share, for the quarter ended Oct. 25.
TJX’s revenues inched up 2.2 percent to $4.76 billion from $4.66 billion.
The off-price retailer cut its earnings guidance for the full year to $2.07 to $2.11 a share from continuing operations. This compared with August projections of $2.30 to $2.35 and year-ago EPS of $1.68.
“We hold our own and do better than most in tough times,” Meyrowitz said on a conference call. “We are one of the most flexible business models in the world and we are seeing the benefits of that flexibility now.”
The off-price model lets TJX turn goods quickly during the holidays.
“Our ability to go in, in the month of December, and buy goods for Christmas puts us at such an incredible advantage and we intend to take this opportunity to be even more aggressive than we have before,” Meyrowitz said. “We are seeing some very nice high-end goods at crazy prices, so we’re pretty excited about it.”
Not all retailers have proved as resilient as TJX Cos., corporate parent to TJ Maxx, Marshalls, HomeGoods, A.J. Wright and nameplates abroad. Circuit City, Mervyns, Steve & Barry’s and Boscov’s are just some of the chains to file for bankruptcy or liquidate this year, and even stronger firms such as J.C. Penney Co. Inc. have scaled back on their plans to open stores.
All of this plus a solid financial footing adds up to a real estate opportunity for TJX.
“We are taking full advantage of the exceptional real estate deals out there,” Meyrowitz said. “There is a great deal of shaking out going on in the retail landscape, which has already occurred and which we expect to continue. TJX is here for the long term and we plan to take full advantage of the opportunities presented to us.”
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye