TJX Companies posts 5 percent rise in Q3 comparable sales

The TJX Companies net sales for the third quarter of fiscal 2017 increased 7 percent to 8.3 billion dollars, over a 5 percent increase last year. Consolidated comparable store sales increased 5 percent. Net income for the quarter was 550 million dollars and diluted earnings per share were 0.83 dollar, while adjusted diluted earnings per share were 0.91 dollar against 0.86 dollar in the prior year. The company increased its store count by 110 stores to a total of 3,785 stores during the quarter.

Commenting on the company’s results, Ernie Herrman, Chief Executive Officer and President of The TJX Companies, stated in a statement, “We are extremely pleased that our strong momentum in customer traffic and sales continued in the third quarter. We remain laser focused on achieving our goals for 2016 and are passionate about surpassing them. We are on our way to becoming a 40 billion dollars-plus company.”

Net sales for the nine-months up 8 percent

For the first nine months, net sales were 23.7 billion dollars, 8 percent increase over last year’s 6 percent increase. Consolidated comparable store sales increased 5 percent. Net income was 1.6 billion dollars and diluted earnings per share were 2.43 dollars and adjusted diluted earnings per share were 2.51 dollars compared to 2.35 dollars in the prior year.

Fourth Quarter and Full Year Fiscal 2017 Outlook

For the fourth quarter, the company expects diluted earnings per share to be in the range of 0.96 dollar to 0.98 dollar compared to 0.99 dollar last year. The company expects wage increases to negatively impact EPS growth by 3 percent and the combination of foreign currency and transactional foreign exchange to make an additional 6 percent negative impact on EPS growth. This EPS outlook is based upon estimated consolidated comparable store sales growth of 1 percent to 2 percent over last year’s strong 6 percent increase.

For fiscal 2017, the company expects GAAP diluted earnings per share of 3.39 dollars to 3.41 dollars and adjusted earnings per share of 3.46 dollars to 3.48 dollars, versus prior guidance of 3.39 dollars to 3.43 dollars, reflecting the company’s strong third quarter results. The EPS outlook is based upon estimated consolidated comparable store sales growth of 4 percent.

Picture:T. J. Maxx