Net sales for the second quarter at The TJX Cos. Inc. increased 8 percent to $5.5 billion, the company said Tuesday. Comparable-store sales for the quarter, ended July 30, grew 4 percent. Net income was $348 million and diluted earnings per share were 90 cents, compared with 74 cents per share last year.
The off-price retailer said last year’s second quarter included a positive impact from a nonoperating item. Without the item, diluted EPS for the second quarter increased 23 percent over the prior year’s 73 cents adjusted diluted EPS, exceeding the high end of TJX’s already raised expectations.
Current-year results also include a 3 cent per share positive impact related to foreign currency exchange.
For the first half of fiscal 2012, net sales were $10.7 billion, a 6 percent increase over last year, and consolidated comp-store sales rose 3 percent over the prior year. Net income was $614 million and diluted EPS was $1.57, compared with $1.54 in the same 2010 period. The company said a number of items impacted the comparability of EPS for both periods. Excluding these items, adjusted diluted EPS for the first six months of fiscal 2012 were $1.68, a 10 percent increase over the adjusted $1.53 the previous year.
“Customer traffic continues to be up [with] large increases in the last two years,” said Carol Meyrowitz, chief executive officer of TJX, adding that the traffic speaks to “the great flexibility of our business model, which has enabled us to succeed year after year, through both strong and weak economic environments.”
Meyrowitz said TJX will be significantly increasing its marketing penetration in the second half of the year and leveraging its marketing spend.
Gross profit margin for the second quarter was 27.3 percent, up 0.7 percent over last year. Selling, general and administrative costs as a percent of sales were 16.9 percent in the second quarter, a 0.1 percent increase over 2010, reflecting a greater advertising investment.
The company raised its outlook for full-year fiscal 2012 for EPS, on a GAAP basis, to be in the range of $3.78 to $3.86, compared with $3.30 in EPS from continuing operations in fiscal 2011. Excluding costs related to the shuttering of the A.J. Wright chain in fiscal 2012, adjusted diluted EPS for the full year is expected to be in the range of $3.89 to $3.97, an increase of 11 to 14 percent over last year.
For the third quarter, TJX expects diluted EPS on a GAAP basis in the range of $1.03 to $1.07, a 12 to 16 percent increase over 92 cents per share last year. The outlook is based on estimated consolidated comp-store sales growth of 2 to 3 percent.
In honor the @CFDA’s announcement of @iamnaomicampbell receiving the Fashion Icon Award at the 2018 #CFDAAwards, which will take place on June 4, here’s a #tbt of the supermodel on @michaelkors’ runway in 1991. #wwdfashion #wwdarchive (📷: George Chinsee)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
“I love the idea of dialogue, period. It’s where I’ve always gotten my inspiration from: hearing other women speak, their journeys and their paths,” said @hereisgina, who delivered the keynote speech during @sxsw for @createcultivate in partnership with @fossil. For her two panels, Rodriguez chose female empowering, female-led and female entrepreneurs to focus on. Head to WWD.com to read more about her thoughts on Time’s Up, growing up in a family of women and why we “need a girls’ club.” #wwdeye #sxsw (📷: @jgreenery)
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.