The TJX Companies reports Q3 net sales rise of 6 percent
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Commenting on the results, Carol Meyrowitz, Chief Executive Officer of The TJX Companies, stated, “I am very pleased with our third quarter performance. Our comp sales increase of 2 percent was at the high end of our plan against 5 percent growth last year, our strongest quarter of 2013. On an adjusted basis, we drove a 13 percent EPS increase over 21 percent growth last year. We are particularly pleased that customer traffic continued to gain momentum in the third quarter despite unusually warm weather, which we believe dampened sales throughout TJX Europe starting in September and hurt Marmaxx in October. Having said that, the fourth quarter is off to a very strong start.”
Net income for the third quarter was 595 million dollars and diluted earnings per share were 0.85 dollars compared with last year's 0.86 dollars per share, which included a tax benefit of 0.11 dollars. Excluding this benefit, diluted earnings per share increased 13 percent on an adjusted basis over last year's adjusted 0.75 dollars per share. The impact of foreign currency exchange rates to this year's third quarter earnings per share was neutral versus the company's expectation of 0.01 dollars per share benefit.
For the first nine months of fiscal 2015, net sales were 20.8 billion dollars, a 6 percent increase over last year and consolidated comparable store sales increased 2 percent over last year's 3 percent increase. Net income for the first nine months of fiscal 2015 was 1.6 billion dollars and diluted earnings per share were 2.22 dollars. Excluding a second quarter debt extinguishment charge, which rounded to 0.01 dollars per share impact for the first nine months of fiscal 2015, adjusted diluted earnings per share were 2.23 dollars, a 10 percent increase over last year's adjusted 2.03 dollars, which excludes the third quarter tax benefit from reported diluted earnings per share of 2.14 dollars.
For the fourth quarter of fiscal 2015, the company is updating its diluted earnings per share guidance to be in the range of 0.86 dollars to 0.90 dollars, which would represent a 6 percent to 11 percent increase over last year's 0.81 dollars per share. On a reported basis, for the fiscal year ending January 31, 2015, the company now expects diluted earnings per share to be in the range of 3.07 dollars to 3.11dollars versus 2.94 dollars in fiscal 2014. During the third quarter ended November 1, 2014, the company increased its store count by a net of 106 stores.