:max_bytes(150000):strip_icc()/GettyImages-634293218-960d8a1070374d42b464a82e3fd3b5a5.jpg?w=780&resize=780,470&ssl=1 "Discount Retailer TJX Lifts Outlook, Posts Higher-than-Estimated Q3 Results")
KEY TAKEAWAYS
- TJX Companies, the operator of discount retailers including TJ Maxx, posted higher-than-expected quarterly results Wednesday and raised its full-year earnings outlook.
- TJX said it is raising its full-year pretax profit margin outlook and expects a 3% gain in comparable store sales year-over-year.
- Strong European sales drove gains in its international business, TJX said.
TJX Companies (TJX), the operator of discount retailers including TJ Maxx, posted higher-than-expected quarterly results on the back of gains in European sales Wednesday and raised its full-year earnings outlook.
The company, whose brands also include HomeGoods and Marshall’s, posted third-quarter net sales of $14.1 billion, up 6% year-over-year, and above estimates from Visible Alpha of $13.93 billion.
Earnings per share (EPS) of $1.14 also exceeded the $1.08 EPS estimate compiled by Visible Alpha.
Chief Executive Officer (CEO) Ernie Herrman said the 3% gain in year-over-year same store sales was at the “high end” of the company’s plan and that the fourth quarter is “off to a strong start.”
TJX Forecasts Full Year Comparable Store Sales to Rise 3%
TJX said it expects full-year consolidated comparable store sales to be up 3%.
It also raised its pretax profit margin outlook for the full fiscal year to be 11.3% and EPS to be in the range of $4.15 to $4.17.
When it announced second-quarter earnings, TJX raised its outlook for pretax profit margin to around 11.2% and raised its forecast for diluted EPS to a range of $4.09 to $4.13.
TJX shares fell more than 1% Wednesday and are up about 25% this year.
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