T.J. Maxx Owner Hikes Guidance After 2Q Profit Climbs 14%

By EarningsFOXBusiness

TJX Earnings

Diane Macedo reports that TJX, the parent company of TJ Maxx, beat estimates with its 2Q earnings report.

Boosted by stronger-than-expected sales growth, TJX Cos. (NYSE:TJX) beat the Street on Tuesday with a 14% jump in second-quarter profits, prompting the parent of T.J. Maxx and HomeGoods to boost its full-year earnings forecast.

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Investors applauded the upbeat news from the retailer, driving its shares 3% higher in premarket trading.

TJX said it earned $479.6 million, or 66 cents a share, last quarter, compared with a profit of $421.1 million, or 56 cents a share, a year earlier. Analysts had been calling for EPS 63 cents.

Revenue jumped 8.4% to $6.44 billion, exceeding the Street’s view of $6.37 billion.

Gross margins ticked up to 28.8% from 28.1% and same-store sales increased 4%, topping the    company’s projections.

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Looking ahead, TJX raised its full-year earnings targets to $2.74 to $2.80, up from $2.70 to $2.78 previously. By comparison, Wall Street analysts have been expecting full-year EPS of $2.82. Same-store sales are seen rising 2% to 3%.

For the ongoing third quarter, management forecasted EPS of 69 cents to 72 cents on same-store sales growth of 2% to 3%. Consensus estimates from analysts are for EPS of 71 cents.

“The third quarter is off to a solid start and we see many opportunities for the second half of the year and beyond,” TJX CEO Carol Meyrowitz said in a statement. “We are in an excellent inventory position, which gives us the flexibility to capitalize on the great brands and fashions available to us in the marketplace.”

Shares of Framingham, Mass.-based TJX picked up 3.31% to $52.43 ahead of Tuesday’s opening bell, positioning them to build on their 2013 gain of 19.5%.

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