(Reuters) – TJX Cos Inc, the owner of off-price retail chains T.J. Maxx and Marshalls, reported better-than-expected quarterly profit and sales on Tuesday as its discounts attracted shoppers turning away from department stores and mall-based retailers.
TJX sells home furnishings, apparel and accessories of brands such as Tommy Hilfiger and Marc Jacobs at prices 20 percent to 60 percent lower than those offered by most other retailers.
The company on Tuesday also raised its forecast for adjusted earnings to $3.78 to $3.82 per share from $3.71 to $3.78 for the year ending January 2018. Analysts on average were expecting $3.89 per share, according to Thomson Reuters I/B/E/S.
Framingham, Massachusetts-based TJX’s results contrast dismal reports from other U.S. retailers such as Macy’s Inc and J.C. Penney Co Inc that reported declining sales last week as more customers shop online.
TJX said comparable-store sales rose 3 percent in the second quarter ended July 29. Analysts on average had expected 2.3 percent, according to research firm Consensus Metrix.
“Customer traffic was up and was the primary driver of our comp store sales growth at every division,” TJX Chief Executive Ernie Herrman said in a statement.
Total revenue climbed 6 percent to $8.36 billion, beating analysts’ expectations of $8.29 billion.
TJX’s net income slipped 1.6 percent to $553 million, or 85 cents per share as expenses surged.
Excluding one-time items, the company earned 85 cents per share, edging past analysts’ estimates by one cent.
Shares of the company were slightly higher at $70.50 before the bell on Tuesday. (Reporting by Gayathree Ganesan and Vibhuti Sharma in Bengaluru; Editing by Sai Sachin Ravikumar)
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