TJX Cos. (TJX) revealed stronger-than-expected third-quarter profits on Tuesday but warned of weaker year-over-year earnings for the key holiday season.
The Framingham, Mass.-based T.J. Maxx and Marshalls parent reported net income of $623 million, or 86 cents a share, compared with a year-earlier profit of $461.5 million, or 62 cents.
Excluding a one-time tax benefit, TJX said it earned 75 cents, topping average analyst estimates by a penny, according to a Thomson Reuters poll.
As more price-conscious consumers visited its discount department stores, revenue for the three months ended Nov. 2 increased by 9% to $7 billion from $6.4 billion a year ago, matching the Street’s view.
Same-store sales, a key growth metric for retailers measuring sales at stores open longer than a year, increased by 5%.
"We believe these robust results demonstrate, once again, our ability to succeed in all types of economic and retail environments,” TJX CEO Carol Meyrowitz said in a statement.
Shares of TJX were up 1.5% to $63.42 in morning trade.
TJX said the fourth quarter is “off to a good start" and raised its full-year non-GAAP earnings guidance to between $2.80 and $2.83 a share, up from $2.47 last year.
However, the consensus view is slightly higher, at $2.86.
The retailer also kept its fourth-quarter guidance unchanged in the range of 77 cents to 80 cents, down slightly from 82 cents in the year-earlier period and below average estimates of 84 cents.