Off-price retailer TJX Cos. (NYSE:TJX) reported Tuesday a slightly better-than-expected third-quarter profit, as consumers sought cold-weather attire despite a warmer-than-usual September and October.
The operator of discount apparel and home fashions stores such as T.J. Maxx, Marshalls, Homegoods and A.J. Wright, posted net income of $372 million, or 92 cents a share, compared with $347.78 million, or 81 cents a share, in the same quarter last year.
Revenue for the Framingham, Mass-based company was $5.5 billion, up 5% from $5.24 billion a year ago, driven by 1% growth in comparable store sales.
Results for the period ended Oct. 30 were ahead of average analyst estimates polled by Thomson Reuters of 91 cents a share for earnings and $5.52 billion in revenue.
“I am very pleased with our third quarter overall performance, which exceeded the high end of our expectations,” said Carol Meyrowitz, TJX chief executive, noting the growth demonstrates the company’s “ability to continue to grow earnings even against challenging comparisons.”
The CEO attributed gains to “lean inventories” that have improved merchandise margins and higher customer traffic, which pursued despite warm weather in September and October that lowered demand for cold weather apparel.
Total inventories as of Oct. 30 were $3.3 billion, flat from the prior year period.
“With the weather cooling, November is off to a good start,” he said. “We are extremely well positioned as we enter the fourth quarter.”
For that period, the company sees earnings in the range of 89 cents to 94 cents a share, representing flat to a 5% decrease from the year-earlier period.