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.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia