Retailer TJX Co. (NYSE:TJX) posted a 9.2% rise in third-quarter profits on Tuesday despite warmer weather, triggering a more bullish holiday-sales outlook from the parent of T.J. Maxx and Marshalls.
The Framingham, Mass.-based company said it earned $406.5 million, or $1.06 a share, last quarter, compared with a profit of $372.3 million, or 92 cents a share, a year earlier. Analysts had called for EPS of $1.05.
Revenue rose 4.8% to $5.79 billion, slightly trailing the Street’s view of $5.85 billion. Consolidated same-store sales climbed 3%. Gross margins expanded to 28.1% from 27.5% the year before.
“We achieved these strong results despite unseasonably warm weather during the quarter in many key regions of the U.S. and Canada, which hindered demand for fall apparel,” CEO Carol Meyrowitz said in a statement. “Sales in the U.S. picked up when the weather turned cooler and we ended the quarter strongly.”
Looking ahead to the crucial holiday-shopping season, TJX upped its fourth-quarter same-store sales growth view to a range of 2% to 3%, up from 1% to 2% previously.
TJX also reaffirmed its 2012 non-GAAP EPS guidance of $3.93 to $3.97. However, only the upper end of that outlook would meet the Street’s view of $3.97.
“Although it’s still early, November is off to a strong start. We are excited about our opportunities for the holiday selling season and the fourth quarter,” Meyrowitz said.
Shares of TJX slipped 0.12% to $60.50 Tuesday morning and has rallied almost 37% year-to-date.