TJX Net Grows 9.2 Percent in Q3
Posted on November 15, 2011 by
FRAMINGHAM, Mass.-Increases in both sales and margins bolstered The TJX Cos. to a gain of 9.2 percent in third-quarter net income, to $406.5 million.
Net sales for the off-price retail company in the quarter, which ended on Oct. 29, rose 4.8 percent to $5.8 billion, which included a consolidated same-store sales increase of 3 percent. Looking at the performances by individual divisions, the HomeGoods specialty-store operation led the pack with a gain of 5 percent in same-store sales, followed by Marmaxx with a 4 percent pickup.
Carol Meyrowitz, TJX's CEO, said sales through the company's divisions grew in spite of unseasonably warm weather through many key regions in the United States and Canada during the quarter, which dampened fall apparel sales. The weather cooled in the United States toward the end of the quarter, which led the company to a strong finish.
Gross margin rose 58 basis points to 28.1 percent. Although selling, general and administrative expenses increased 4.5 percent in dollars, they declined five basis points as a percentage of sales, to 16.5 percent.