The TJX Companies Inc. reported net sales for the fiscal second quarter ended August 1 increased 6 percent to $7.4 billion and consolidated comparable store sales increased 6 percent over last year’s 3 percent increase.
Net income for the second quarter was $549 million and diluted earnings per share were $.80, a 7 percent increase over the prior year’s adjusted $.75, which excluded a $.02 per share debt extinguishment charge from reported earnings per share of $.73.
For the first half of Fiscal 2016, net sales were $14.2 billion, a 6 percent increase over last year. Consolidated comparable store sales for the first half of Fiscal 2016 increased 5 percent. Net income for the first half of Fiscal 2016 was $1.0 billion. Diluted earnings per share were $1.49, an 8 percent increase over the prior year’s adjusted $1.38, which excluded a $.01 per share debt extinguishment charge from reported earnings per share of $1.37. For the first six months of Fiscal 2016, the movement in foreign currency exchange rates had a three percentage point negative impact on consolidated net sales growth. The overall net impact of foreign currency exchange rates had a $.04 negative impact on earnings per share in the first six months of Fiscal 2016, compared with a $.02 negative impact last year.
“We are extremely pleased that our momentum continued in the second quarter,” said Carol Meyrowitz, chairman and CEO, The TJX Companies Inc. “Our 6 percent consolidated comparable store sales growth and 7 percent adjusted EPS growth significantly exceeded our expectations. It was great to see that comp sales were entirely driven by customer traffic our fifth consecutive quarter of sequential traffic improvement and that we had strong sales across all of our divisions.”
“We were also very pleased with our solid merchandise margins,” she continued. “The third quarter is off to a solid start and we are raising our full year comp sales and earnings per share guidance.”
Sales by Business Segment
The Company’s comparable store sales and net sales by division, in the second quarter, were as follows:
| Second Quarter | Second Quarter | |||||||||||||
| Comparable Store Sales1,2 | Net Sales ($ in millions)3,4 | |||||||||||||
| FY2016 | FY2015 | FY2016 | FY2015 | |||||||||||
| In the U.S.: | ||||||||||||||
| Marmaxx5,6 | +4% | +2% | $4,806 | $4,494 | ||||||||||
| HomeGoods | +9% | +5% | $895 | $773 | ||||||||||
| International: | ||||||||||||||
| TJX Canada | +12% | +3% | $699 | $696 | ||||||||||
| TJX Europe | +5% | +6% | $963 | $954 | ||||||||||
