The TJX Companies, Inc. reported July 2010 sales results. Sales for the four-week period ended July 31, 2010, were $1.5 billion, up 6% over the $1.4 billion achieved during the four-week period ended August 1, 2009. For the 26-week period ended July 31, 2010, sales reached $10.1 billion, an 11% increase over the $9.1 billion achieved in the same period last year.
Carol Meyrowitz, President and Chief Executive Officer of The TJX Companies, Inc., stated, “Our July consolidated comparable store sales increase of 2%, as well as our 3% increase at The Marmaxx Group, were both in line with our expectations. It is also worth noting that these results were on top of strong comparable store sales increases last year, which were more challenging than those faced by most other retailers. Sales increases were driven by customer traffic, which continues to be up over significant increases last year. July is typically a clearance month as we transition from summer to back-to-school. We managed our inventories very tightly during the second quarter which resulted in significantly less clearance merchandise in July. Therefore, while we may have sacrificed some top-line improvement, second quarter margins and earnings are in excellent shape, and we enter the back half of the year with extremely clean inventories. We are seeing exciting brands and fashion in the marketplace and are ready to take advantage of these great opportunities. In addition, we have saved the majority of our marketing budget for the back half of the year, which will allow us to increase our market penetration substantially in order to continue to drive customer traffic.”
For the second quarter of Fiscal 2011, the Company now expects earnings per share to be at or slightly above the high end of its previously anticipated range of $.70 to $.73. The high end of this range represents a 20% increase over last year. This range includes an estimated $.01 to $.02 per share benefit from a reduction in the reserve related to the previously announced computer intrusion(s), reflecting insurance recoveries as well as other adjustments, which had not been contemplated in the prior guidance.
