TJX's HomeGoods, Marmaxx beat expectations in 3Q
Retail Editor 3 -- Home Textiles Today, November 15, 2011
Framingham, Mass. - Unseasonably warm weather temporarily hindered apparel sales but created movement instead in home for The TJX Companies Inc. during the third quarter, aiding the company's better-than-expected results.
By nameplate, third quarter results included:
- Marmaxx: 8.2% increase in sales to $3.79 billion, and 4% comp increase;
- HomeGoods: a 15% sales increase to $551 million and a 5% comp gain;
- TJX Canada: a 5.7% increase in sales to $705 million but a 2% comp decline.
HomeGoods "is becoming a more powerful brand every day, and we believe that its notched-up advertising in the fourth quarter will help us continue to gain market share," said ceo Carol Meyrowitz during the company's quarterly conference call with analysts today.
Traffic and average ticket for the U.S. divisions were both"up slightly, "which bodes well for our fourth quarter," she noted.
Companywide, net income for the quarter ended Oct. 29 rose 15% to $406 million and earnings per share were $1.06, versus 92 cents per share in the year-ago quarter. Total sales increased 5% to $5.8 billion, and consolidated comparable store sales grew 3%.
Meyrowitz said November is off to a strong start. The company boosted its guidance for 4Q comps, which it now expects to rise 2% to 3%. Previously, it forecasted a gain of 1% to 2%.
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