OFF-PRICE RETAILER TJX REPORTS FIRST QUARTER GAINS
Leading off-price retailer The TJX Companies, Inc, owner of such stores as TJ Maxx and Marshall’s, has announced sales and earnings results for the first quarter ended April 29, 2017.
Net sales for the first quarter of Fiscal 2018 increased 3 percent to $7.8 billion and consolidated comparable store sales increased 1 percent over last year’s 7 percent increase. Net income for the first quarter was $536 million. Diluted earnings per share were $.82 versus the prior year’s $.76, which Ernie Herman, the company’s CEO and president, said was “above plan.”
Herman continued: “We achieved these results despite the unfavorable weather in parts of the U.S. and Canada compared to last year. We were pleased to see sales trends pick up as the quarter progressed. With our disciplined inventory management, our merchandise margin was up, which speaks to the resiliency and flexibility of our off-price retail model. Further, we are confident that we are gaining market share at each of our four major divisions. The second quarter is off to a solid start and we have excellent liquidity in our inventories. This positions us extremely well to capitalize on the plentiful buying opportunities we see for exciting fashions and brands in the marketplace and bring them to consumers at amazing values.”
For the second quarter of Fiscal 2018, the company expects diluted earnings per share to be in the range of $0.81 to $0.83 compared to $.84 last year, with estimated consolidated comparable store sales growth expected to be in the 1 to 2 percent range.
For the 53-week fiscal year ending February 3, 2018, the company now expects diluted earnings per share in the range of $3.82 to $3.89, which represents a 10 to 12 percent increase over the prior year’s $3.46. Its full-year guidance includes an expected benefit of approximately $.11 per share from the 53rd week in the company’s Fiscal 2018 calendar.
