The TJX Cos. Inc. on Tuesday reported higher second-quarter earnings and sales and boosted profit guidance for the year.
The off-pricer’s earnings shot up 239.2 percent to $200.2 million, or 45 cents a diluted share. This compared with $59 million, or 13 cents, a year ago, when charges related to attacks on the company’s computer system dragged the bottom line down $118 million. Sales for the three months ended July 26 advanced 7.1 percent to $4.62 billion from $4.31 billion and were up 4 percent on a same-store basis.
The attacks on TJX’s computers subsequently turned out to be part of a global scam. The Justice Department last week charged 11 people with the theft of more than 40 million credit card numbers from retailers including TJX, Forever 21, DSW Inc., BJ’s Wholesale Club Inc. and Barnes & Noble.
The 2,615-door, Framingham, Mass.-based TJX, the largest U.S.-based off-price operation, is using the current economic downturn not only to attract new customers looking for bargains, but to snatch up real estate for its expanding store concepts and fund its plans for global expansion.
“Our core businesses are performing extremely well and funding our growth vehicles such as A.J. Wright and T.K. Maxx Germany,” said Carol Meyrowitz, president and chief executive officer, on a conference call with investors Tuesday.
“I have complete faith that our model will allow us to continue to grow to $30 billion to $40 billion and beyond,” she said.
The 132-door A.J. Wright business, which drove comparable-store sales up 6 percent for the quarter and cut its divisional losses by more than half to $765,000, is one of the concepts that could make a bigger splash.
The chain, which sells accessories, shoes, juniors, young men’s, kids’ and basics, will move into additional markets next year. The U.S. could ultimately support 500 to 1,000 A.J. Wrights, said Meyrowitz.
“This is a very good environment for real estate opportunities for A.J.,” said Meyrowitz.
For the first half, earnings soared 78.2 percent to $394.1 million, or 88 cents a diluted share, on a 6.7 percent sales bump to $8.99 billion.
The firm upped its earnings guidance for the year to $2.26 to $2.31 a share from the $2.20 to $2.25 previously projected. In fiscal 2008, TJX earned $1.66 a share.
Shares of TJX dropped 2.2 percent to $36.17 in New York Stock Exchange trading Tuesday, but Mark Montagna, analyst for C.L. King & Associates, attributed at least some of the decline to investors looking to lock in earlier profits.
There'll be no rest for those headed to Europe for men's, as Paris just closed the gap with Milan. According to a provisional calendar released by the Chambre Syndicale, Paris Men's Week will now open a day earlier on January 16. See new highlights on the official lineup on WWD.com. #wwdnews #wwdfashion (📷: @kukukuba)
BREAKING: Jonathan Saunders is leaving @DVF. The designer has resigned from his position as chief creative officer of Diane von Furstenberg, the company said in a statement on Friday. At the time of his hire, von Furstenberg said Saunders’ arrival symbolized and facilitated her stepping back from the day-to-day duties that occupy the work of a full-time creative director. The British designer joined DVF in May 2016 and was in charge of all product categories. #wwdnews
For @versace_official’s spring ad campaign, the brand emphasized the archival prints from the spring tribute collection dedicated to the late Gianni Versace. Closing out the show were five of Gianni’s favorite models: Cindy, Naomi, Carla, Helena, and Claudia. Bowing on December 18, the new campaign is yet another tribute to supermodel-dom as the images by Steven Meisel are fronted by @iamnaomicampbell, @cturlington, @gisele and more. #wwdfashion
Four-time Oscar-nominated actress Annette Bening has been waiting 20 years to play Gloria Graham in "Film Stars Don't Die in Liverpool," which will be released on December 29. The movie about Graham – a Hollywood star known for her controversial relationship with a younger Englishman named Peter Turner – is based off a memoir Turned wrote. "She felt vulnerable to him, because she loved him, she really did love him. And anyone that we really truly are in love with, we re vulnerable to in a very deep way," said Bening. Read our full interview with the modern icon of an actress on WWD.com. #wwdeye (📷: @ninebagatelles; Styled by @cristinaehrlich)
The crisp white button down: a staple that can be dressed up or down and accessorized throughout the decades. Here, on a Art Basel-goer in 2017 on the left and on the iconic Audrey Hepburn in “Roman Holiday” in 1953 on the right. #tbt #wwdfashion (📷: Andrew Morales)
Known for her work with @victoriassecret, 25-year-old model @georgiafowler is raising her profile in Hollywood. Fowler stars in @vincecamuto’s holiday campaign, which launched in partnership with “Pitch Perfect 3.” “Almost every shoot with Vince Camuto, I’ve had to face a fear…It was definitely a challenge. I’m so grateful for it, though. I’ve always wanted to be a pop star, so that was the perfect chance,” Fowler said. Head to WWD.com to read about Fowler’s experience modeling, including at the #VSFashionShow, and her relationship with Nick Jonas. #wwdeye (📷: @jilliansollazzo)
EXCLUSIVE: Huda Kattan just became the first beauty influencer to land a major beauty deal. Kattan's business, @hudabeauty, has received a minority investment from private equity firm TSG Consumer Partners. The brand, which industry sources say is on track to do $200 million in retail sales for 2017, will receive support on product, retail and geographic expansion through the deal. Get all the details on the deal and read @_a_collins' interview with Kattan on WWD.com. Link in bio. (📷: @jgreenery) #wwdbeauty #wwdnews
Peruvian model @juanaburga_official – who is known for walking the runways of @rodarte, @viviennewestwood and @torybuch – is making the move to the big screen with drama “Los Últimos.” The film premiered in Argentina in November and arrives in the U.S. and Europe in 2018. On making the switch from modeling to acting, Burga told WWD: “It’s a completely different thing – a lot of people think it’s similar or try to connect things, especially like getting used to the camera or being looked at all the time or playing these different characrers, but film is a completely different story.” #wwdeye (📷: @jgreenery)
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)