TJX Companies Q1 earnings increase 8 percent

Net sales for the first quarter of fiscal 2016 at the TJX Companies increased 6 percent to 6.9 billion dollars, and consolidated comparable store sales increased 5 percent. Net income for the first quarter was 475 million dollars, and diluted earnings per share were 0.69 dollars, an 8 percent increase over the prior year.

Commenting on the results, Carol Meyrowitz, Chief Executive Officer of The TJX Companies, stated, “Our 5 percent consolidated comparable store sales growth and 8 percent increase in earnings per share were both well above our plan. We are raising our full year earnings per share and comp sales guidance based on the strength of our first quarter results. We have the right strategy in place to achieve our long-term growth goals as TJX continues on the path to becoming a 40 billion dollars-plus global, value retailer.”

For the first quarter, the company’s consolidated pretax profit margin was 11.1 percent, a 0.2 percentage point decrease compared with the prior year’s 11.3 percent margin. Gross profit margin was 28.3 percent, up 0.4 percentage points versus the prior year, primarily due to strong merchandise margin improvement and, to a lesser extent, buying and occupancy leverage.

For the second quarter of fiscal 2016, the company expects diluted earnings per share to be in the range of 0.72 dollars to 0.74 dollars compared to 0.73 dollars last year. Estimated consolidated comparable store sales are expected to grow 2 percent to 3 percent. For the fiscal ending January 30, 2016, the company expects diluted earnings per share to be in the range of 3.21 dollars to 3.27 dollars versus 3.15 dollars in fiscal 2015. During the first quarter ended May 2, 2015, the company increased its store count by a net of 46 stores.