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TJX reports record second quarter, momentum in home

Framingham, Mass. — Consumers are still shopping during the recession, but are hunting for better bargains and more value for their dollars, TJX Companies execs said when reporting second quarter results today.

For the quarter ended Aug. 1, TJX reported a profit up 31.7% $261.6 million, or 61 cents a share, owing to stronger sales and a wider profit margin. Sales rose 4% to $4.75 billion and comparable-store sales increased 4% over last year. Earnings rose 31% on stronger sales and wider profit margin.

“It is great to report such strong results,” Carol Meyrowitz, president and ceo, said during the retailer’s conference call this morning. Meyrowitz said that the company’s “value is winning in this environment,” making it “well-positioned for the future.”  Meyrowitz believes the “value-oriented customer mindset will prevail.”  She is also “pleased with the [the company’s] current momentum entering the back-to-school period.”

The HomeGoods division reported its best second quarter ever with margins up 5.9%. Comp-store sales at HomeGoods were up 9% over last year. Meyrowitz predicts an all-time high for the year and sees “untapped opportunities for the future,” in this business segment. She cited a strong home business across the board and pointed out that the retailer is doing well selling basic pieces as well as fashion pieces. Calling HomeGoods a “terrific model,” she said, “[HomeGoods] made some missteps last year, but we are back on track.” Inventory levels are down and the store is full of “fresh, fantastic merchandise.”

Meyrowitz noted that although basket and average ticket was down for the quarter, "extraordinary increases in customer traffic counts" propelled all divisions to meet or exceed expectations. The company is planning 90 new stores this year.

Looking ahead, the company is “far from maximizing [its] growth potential,” Meyrowitz said. “Complacency is not in our DNA. We are planting new seeds for future growth and we will emerge from the recession in a stronger position.”

 

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