T.J. Maxx and Marshalls operator TJX (NYSE:TJX) revealed on Tuesday sharply higher second-quarter profit that trumped analyst expectations as domestic demand for lower-priced items continued to catapult earnings ahead of economic headwinds.
Reflecting the strong performance, the company raised its fiscal outlook to a range of $3.78 to $3.86 a share, with non-GAAP profits between $3.89 and $3.97, on a 2% to 3% increase in comparable store sales.
Wall Street is looking for earnings of $3.95 a share.
The Framingham, Mass-based chain retailer posted net income of $348 million, or 90 cents a share, up 14% compared with $304.9 million, or 74 cents a share, in the same quarter last year.
Analysts polled by Thomson Reuters had been expecting on average slightly lower earnings of 89 cents. Revenue for the company, which also operates HomeGoods and HomeSense stores, was $5.45 billion, up 8% from $5.1 billion a year ago.
TJX, which sells low-price retail products, attributed the results to a 4% jump in stores open more than a year and domestic growth that more than offset a decline in Europe and flat comparable sales in Europe.
I am very pleased with our strong second quarter performance as our 23% increase in adjusted earnings per share exceeded the high end of our already raised expectations, TJX chief executive Carol Meyrowitz said in a statement.
The retail chains boss said the performance speaks to the companys flexible business model that has enabled it to steer clear of financial headwinds.