Cost-Cutting, Lean Inventories Boost TJX Profit
TJX said Tuesday that quarterly net profit rose about 8 percent, helped by cost-cutting and lean inventories.
The owner of the T.J. Maxx and Marshalls chains reported net income of $249.5 million, or 54 cents per share, for the third quarter ended Oct. 27, compared with $230.6 million, or 48 cents per share, a year earlier.
The company had forecast earnings of 53 cents to 55 cents per share.
Framingham, Massachusetts-based TJX , which buys excess merchandise in bulk from manufacturers below wholesale prices, said net sales rose 6 percent in the quarter to $4.74 billion.
Same-store sales, a key gauge of retail performance that measures sales at stores open at least a year, rose 3 percent.
The company said favorable currency exchange rates prompted it to raise its expectation for fourth-quarter earnings. It expects earnings from continuing operations of 58 cents to 60 cents per share, assuming same-store sales rise 4 percent.
For the fiscal year ending Jan. 26, TJX expects earnings in the range of $1.86 to $1.88 per share, excluding charges incurred in the first half of the year related to a security breach of its computer system.