The TJX Companies posts strong third quarter results
The TJX Companies Inc., the leading off-price retailer of apparel and home fashions in the U.S. and worldwide, announced sales and earnings results for the third quarter ended October 29, 2011.
Net sales for the third quarter of Fiscal 2012 increased 5% to $5.8 billion and consolidated comparable store sales increased 3%. Net income for the third quarter was $406 million and diluted earnings per share were $1.06, up 15% over $.92 per share last year.
For the first nine months of Fiscal 2012, net sales were $16.5 billion, a 6% increase over last year, and consolidated comparable store sales increased 3% over the prior year. Net income was $1.0 billion, and diluted earnings per share were $2.63 compared to $2.46 in the same period last year. A number of items impacted the comparability of earnings per share for both periods. Excluding these items, adjusted diluted earnings per share for the first nine months of Fiscal 2012 were $2.74, a 12% increase over the adjusted $2.45 in the prior year.
Carol Meyrowitz, Chief Executive Officer of The TJX Companies, Inc., stated, “We are pleased with our strong overall third quarter performance as our 15% increase in earnings per share was in line with our expectations and achieved on top of a 14% increase last year and 40% growth in the year before that.
We achieved these strong results despite unseasonably warm weather during the quarter in many key regions of the U.S. and Canada, which hindered demand for fall apparel. We are also encouraged by the progress we are making at TJX Europe. Further, it's important to note that sales in the U.S. picked up when the weather turned cooler and we ended the quarter strongly.”
Meyrowitz commented on the fourth quarter, “Although it's still early, November is off to a strong start. We are excited about our opportunities for the holiday selling season and the fourth quarter: our inventory position allows us to buy into current trends and ship fresh gift assortments continuously throughout the season; we are ready with great gift initiatives; our marketing campaigns will be seen by more people than ever before; and most of all, we are about amazing value in the form of fashion, quality, brand and price!”
Impact of Foreign Currency Exchange Rates
Changes in foreign exchange rates affect the translation of sales and earnings of the Company's international businesses into U.S. dollars for financial reporting purposes. In addition, ordinary-course inventory-related hedging instruments are marked to market at the end of each quarter.
Changes in currency exchange rates affect the magnitude of these translations and adjustments, and can have a material impact when there is significant volatility in currency exchange rates, as there was in the third quarter.
The movement in foreign currency exchange rates had a 1 percentage point positive impact on consolidated net sales growth in the third quarter of Fiscal 2012. For the first nine months of Fiscal 2012, the movement of foreign currency exchange rates had a 1 percentage point positive impact on consolidated net sales growth. The impact of foreign currency exchange rates on earnings per share is discussed below under “Items Impacting Comparability.”
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The TJX Companies Inc