TJX Outperforms Its Own Expectations

By Sam Lewis

Off-price seller boasts earnings for more than two straight in years in slowly recovering economy

The parent company of brands like HomeGoods, Marshalls, and TJ Maxx has beaten its earnings projection for 2013’s third-quarter. Back in October, the company said it would raise its earnings guidance to 84 or 85 cents per share up from the previously predicted 69 to 72 cents per share. When Q3 was said and done, TJX came through with 86 cents per share.

The world’s leading off-price retailer of apparel and home fashions is reporting earnings of $622.7 million for the quarter ending Nov 2. This marks a 35 percent increase over 2012’s Q3 earnings of $461.6 million. The company is reporting same store sales for the quarter grew 5 percent; beating the company’s forecast of 4 percent same store sales growth. Beating its own expectations throughout Q3 is giving TJX lofty expectations as the holiday season approaches. “We are raising our full-year guidance to reflect our third quarter performance,” says TJX’s CEO Carol Meyrowitz.

Obviously, the Framingham, MA-based company is pleased with its growth. In addition to offering everyday value to its customers, TJX credits gradual investments to make improvements in the company’s supply chain, distribution centers, workforce, and reinvesting into its e-commerce presence as key factors to its sustained growth. “Our focus on value extends to how we invest. We are a low-cost operator at heart. We take an extremely prudent approach to how we spend our capital, and we measure returns whenever possible,” says CFO, EVP, and principal accounting officer at TJX, Scott Goldenberg.

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As the company moves forward through the fourth-quarter and the holiday shopping season, TJX is pleased in the direction it is heading. Meyrowitz says the company is off to a good start in Q4 and the holidays are likely to bring the retailer continued success. “We have great initiatives planned and will be shipping fresh gift-giving selections to our stores throughout the holiday season,” says Meyrowitz. Thinking long-term, TJX remains confident that its current model’s ability to drive top- and bottom-line growth will continue.

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