TJX Second-Quarter Profit Up 20.9 Percent; Marmaxx, HomeGoods Post Strong Quarter
Posted on August 14, 2012 by
FRAMINGHAM, Mass.-With its Marmaxx and HomeGoods segments reporting solid sales gains, TJX's second-quarter net income rose 20.9 percent to $421.1 million.
Net sales for the quarter, which ended on July 28, jumped 8.7 percent to $5.9 billion. Same-store sales for the company as a whole climbed 7 percent, fueled by a 7 percent increase in same-store sales at the Marmaxx division and a rise of 9 percent in comparable-store sales at HomeGoods. These increases came on top of same-store gains of 5 percent for Marmaxx and 3 percent for HomeGoods in last year's second-quarter.
Carol Meyrowitz, TJX's CEO, said, "Customer traffic was up substantially at all divisions in the U.S., Canada and Europe and drove most of the comparable-store sales increase....August is off to a strong start, and we have many exciting opportunities for the second half of 2012."
The sales gains helped produce an increase of 81 points in gross margin, which finished the quarter at 28.1 percent. Selling, general and administrative expenses, while rising 5.9 percent in dollars, were slimmed by 43 basis points as a percentage of sales to 16.5 percent.