TJX Net Up 58 Percent in First Quarter
May 18, 2010,
FRAMINGHAM, Mass.-First-quarter net income for The TJX Cos. ballooned by 58.4 percent to $331.4 million.
The driver in this bottom-line explosion was the company's 15 percent pickup in net sales, which finished the quarter at $5 billion and which included a 9 percent gain in same-store sales. In its statement on the first quarter, TJX said its Marmaxx unit (Marshalls and T.J. Maxx) posted a 10 percent increase in comparable store sales, while its HomeGoods segment saw same-stores sales jump 15 percent and the A.J. Wright unit experienced a 7 percent rise in same-store sales.
In addition, TJX's gross margin increased 446 basis points to 37.5 percent. The rise in sales and gross margin offset a 12 percent increase in selling, general and administrative expenses.
Carol Meyrowitz, TJX's president and chief executive officer, said the company's retail units have taken advantage of the focus on value from a wide demographic of consumers. Meyrowitz said the company is reinvesting in its stores and its marketing campaigns to attract and retain more new customers, while keeping its inventories lean and continuing its cost-reduction initiatives.