The TJX Cos. Inc.’s results continued to soar as more shoppers boarded the flight to value.
During the three months ended Jan. 30, net income for the nation’s largest off-pricer jumped 57.6 percent to $395 million, or 94 cents a diluted share, from $250.7 million, or 58 cents, a year earlier. Revenues advanced 10.4 percent, to $5.94 billion from $5.38 billion, and were up 12 percent on a comparable-store basis.
Profits exceeded the 91 cents Wall Street expected, though sales fell just shy of the anticipated $5.98 billion.
“Even when the economy gets better, as these people feel more flush with money, they now have discovered that they can do pretty well shopping at TJ Maxx and Marshalls,” said RBC Capital Markets analyst Howard Tubin. “[TJX has] become part of the shopping pattern and will stay that way.”
TJX shares rose $1.33, or 3.4 percent, to close at $40.51 as the S&P Retail Index advanced 8.06 points, or 2 percent, to 419.80, the biggest run-up on the index since Nov. 9. Improved results among retailers, often to higher-than-expected levels, also helped the Dow Jones Industrial Average add 91.75 points, or 0.9 percent, to end Wednesday trading at 10,374.16.
“Sales growth was driven by a large increase in transactions as we attracted new customers from all income levels,” said Carol Meyrowitz, president and chief executive officer.
Year-end inventories were down 3.3 percent versus a year ago despite the sales increase.
The Framingham, Mass.-based firm’s net income for the year grew 37.8 percent to $1.21 billion, or $2.84 a diluted share. Revenues stepped up 6.8 percent to $20.29 billion.
TJX said earnings this year are expected to rise to $3.06 to $3.20 a share as comps increase 1 to 2 percent. About $750 million in capital expenditures are anticipated.
Below, results from the other specialty stores reporting results Wednesday.
ZALE Shares of Zale Corp. Wednesday climbed 8.6 percent, the most of any of the 172 issues tracked by WWD, as cost cuts and reduced holiday promotions helped the struggling jewelry retailer swing to a second-quarter profit and exceed consensus estimates despite diminished sales.
For the three months ended Jan. 31, the Dallas-based firm posted net income of $6.7 million, or 21 cents a diluted share, versus a loss of $31.8 million, or $1 a share, a year ago. Analysts polled by Yahoo Finance had expected earnings per share of 2 cents, on average.
Sales in the quarter fell 14.3 percent to $582.3 million from $679.4 million in the comparable period. Same-store sales fell 11.2 percent.
The company credited expense cuts and less holiday discounting for the return to the black. Gross margin in the quarter improved 580 basis points to 49.8 percent. The company reduced selling, general and administrative costs by 13.7 percent in the quarter to $251 million.
Zale has lagged behind other jewelry merchants in regaining sales momentum and cut orders and delayed some payments to vendors after a difficult holiday season. It cut ties with former ceo Neal Goldberg in January and, earlier this month, hired investment bank Peter J. Solomon Co. to advise on restructuring options.
On a conference call Wednesday, executive vice president and chief financial officer Matt Appel said the firm in the next three months would focus on seeking new capital to shore up liquidity. Several reports this week indicated private equity player Apollo Management has an interest in taking a stake in the jewelry chain. Appel said Zale wouldn’t comment specifically on any capital-raising strategies until the process was completed.
Shares closed at $2.78, up 22 cents.
Zale’s year-to-date losses narrowed to $53.1 million, or $1.66 a share, from $80.2 million, or $2.52 a share. Sales in the first half fell 12.7 percent to $911.5 million.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@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)