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Off-price leader the TJX Cos. Inc. continued to grab share of the apparel market in the second quarter — and made money doing it.
This story first appeared in the August 21, 2013 issue of WWD. Subscribe Today.
The Framingham, Mass.-based firm’s profits jumped 13.9 percent to $479.6 million, or 66 cents a diluted share, from $421.1 million, or 56 cents, a year earlier. Earnings per share came in 3 cents ahead of the 63 cents Wall Street analysts anticipated.
Sales for the three months ended Aug. 3 increased 8.4 percent to $6.44 billion from $5.95 billion as comparable-store sales increased 4 percent.
The company is bucking the broader trend in retail that has both budget-minded companies such as Wal-Mart Stores Inc. and middle-price players such as Macy’s Inc. cutting back on estimates.
“The third quarter is off to a solid start and we see many opportunities for the second half of the year and beyond,” said Carol Meyrowitz, chief executive officer. “We are in an excellent inventory position, which gives us the flexibility to capitalize on the great brands and fashions available to us in the marketplace.”
TJX, which operates TJ Maxx and Marshalls in the U.S., upped its earnings guidance modestly for the full year. Profits per diluted share are now expected to range from $2.74 to $2.80, up from the $2.70 to $2.78 anticipated in May. And the projected comp sales gain for the year was raised to a range of 2 to 3 percent, from 1 to 2 percent.
Shares of the company rose 6.9 percent to $54.24 on Wall Street Tuesday.