The TJX Companies Q1 net sales rise 5 percent

REPORT_ The TJX Companies has announced sales and earnings results

for the first quarter ended May 3, 2014. Net sales for the first quarter of fiscal 2015 increased 5 percent to 6.5 billion dollars, and consolidated comparable store sales increased 1 percent. Net income for the first quarter was 454 million dollars, and diluted earnings per share were 0.64 dollars versus last year's 0.62 dollars.

Commenting on the results, Carol Meyrowitz, Chief Executive Officer of The TJX Companies, stated, “For the first quarter, our consolidated comparable store sales increased 1 percent, and our earnings per share of 0.64 dollars were slightly below our expectations with a negative impact from foreign currency exchange rates that was larger than our guidance assumed. While sales were not as strong as we would have liked, predominantly in our apparel business, I was very pleased that overall business trends improved as the quarter progressed.”

The movement in foreign currency exchange rates had a neutral impact on consolidated net sales growth in the first quarter of fiscal 2015 versus the prior year. The overall net impact of foreign currency exchange rates had a 0.02 dollars negative impact on first quarter fiscal 2015 earnings per share, compared with a 0.01 dollars negative impact last year.

For the first quarter of fiscal 2015, the Framingham-based company's consolidated pretax profit margin was 11.3 percent, a 0.5 percentage point decrease compared with the prior year's 11.8 percent margin. Gross profit margin for the first quarter of fiscal 2015 was 27.9 percent, down 0.5 percentage points versus the prior year.

For the second quarter of fiscal 2015, the company expects diluted earnings per share to be in the range of 0.70 dollars to 0.74 dollars which would represent a 6 percent to 12 percent increase over last year's 0.66 dollars per share. This outlook is based upon estimated consolidated comparable store sales growth of 2 percent to 3 percent. The company is updating its full year guidance to reflect its first quarter results. For the fiscal year ending January 31, 2015, the company now expects diluted earnings per share to be in the range of 3.05 dollars to 3.17 dollars versus 2.94 dollars in fiscal 2014. This outlook continues to be based upon estimated consolidated comparable store sales growth of 1 percent to 2 percent.

During the first quarter ended May 3, 2014, the company increased its store count by a net of 37 stores.