The TJX Companies, Inc. (TJX: 41.72 +0.19 +0.46%), the largest international apparel and home fashions off-price department store chain in the United States, posted sales growth of 7% for the five-week period ended July 3, 2010. Also, the company raised its fiscal 2011 earnings outlook to the range of $3.24 - $3.33.Comparable-store sales for June climbed 3% compared with an increase of 4% in the same month last year. The retailer has been registering positive comparable-store sales growth each reported month in 2010, and expects the growth to continue for the rest of the year.
Year-to-date, comparable-store sales rose 7% compared with a growth of 3% in the same period last year.
Continuing the top-line growth momentum, June sales surged 7% to $2.0 billion from $1.8 billion registered in the prior comparable period. Year-to-date, sales jumped 12% to $8.6 billion from $7.7 billion in the corresponding period last year. The results were in-line with management’s expectation. TJX Companies delivered strong results over and above robust growth in the prior-year period.
Year-to-date, sales ascended 12% to $8.6 billion compared with $7.7 billion achieved in the same period last year.
However, rival Ross Stores Inc.’s (ROST: 54.09 +0.06 +0.11%) June sales jumped 9% year-over-year and comparable store sales grew 5%. Following, the quarter-to-date sales results, Ross inflated its second quarter earnings range to $1.00 - $1.02 a share, compared with a previous outlook of 95 – 99 cents.
Costco Wholesale Corporation (COST: 56.19 +0.48 +0.86%), another close peer of TJX, posted sales growth of 9% year-over-year, and comparable store sales grew 3%.
Costco Wholesale Corporation (COST: 56.19 +0.48 +0.86%), another close peer of TJX, posted sales growth of 9% year-over-year, and comparable store sales grew 3%.With a wide geographical coverage, transformation of stores, product enhancement and increased awareness program, TJX continues to attract and retain more new customers, thereby improving customer traffic. Moreover, with lean inventories and cost reduction initiatives, the company will outperform the broader market.
Following robust sales and margins results, Framingham, Massachusetts-based TJX advanced its second quarter earnings outlook to the range of 70 – 73 cents a share, reflecting a growth of 15% - 20% year-over-year. Furthermore, the company also increased its fiscal 2011 earnings guidance to the range of $3.24 - $3.33 per share, representing 14% - 17% annual growth.
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