TJX Q3 Net Fuels to 34.9 Percent Gain
November 19, 2013,
FRAMINGHAM, Mass.-With better-than-expected increases in sales--including an especially strong performance from HomeGoods, its home specialty chain--The TJX Cos. enjoyed a 34.9 percent climb in net income, to $622.7 million, in its third quarter ending on Nov. 2.
Total company net sales were up 8.9 percent to $7 billion, and included 5 percent companywide increase in same-store sales. HomeGoods outpaced the other segments in the company with increases of 16 percent in total sales and 10 percent in same-store sales. TJX Europe also turned in a healthy quarter with increases of 15.3 percent in total sales and 5 percent in same-store sales.
Total company gross margin was up 54 basis points to 29.3 percent, due to improvements in merchandise margins along with buying and occupancy leverage on the above-plan sales. Selling, general and administrative expenses increased 6.3 percent in dollars but fell 41 basis points as a percentage of sales, to 16.6 percent.