TJX Racks Up 21% Sales Gain in December

The TJX Companies, Inc. reported December 2009 sales for the five-week period ended Jan. 2, 2010, were $2.9 billion, up 21% over the $2.4 billion achieved during the five-week period ended Jan. 3, 2009. For the 48 weeks ended Jan. 2, 2010, sales reached $19.0 billion, up 8% over the $17.7 billion achieved during the 48-week period last year.

Consolidated comparable store sales for the five-week period ended Jan. 2, 2010 increased 14% over flat consolidated comparable store sales in December last year.
For the 48-week, year-to-date period, consolidated comparable store sales increased 6% over last year.

“Customer traffic counts accelerated yet again as both loyal and new customers continue to find our values on exciting brands compelling,” said Carol Meyrowitz, president and CEO. “We believe consumers will remain focused on value as the economy improves, which has been the case when previous recessions have abated. In fact, we believe that this will hold true to an even greater degree as this recession abates, which bodes very well for our future. With strong sales and margins in Nov. and Dec., we are significantly raising our guidance for the fourth quarter. With our value proposition, very broad demographic reach, and ability to respond rapidly to customers’ changing tastes, we are very confident in our growth prospects for 2010 and beyond.”

The company now expects fourth quarter Fiscal 2010 diluted earnings per share from continuing operations to be in the range of 82 to 84 cents per share, up 41% to 45% over 58 cents per share last year on a reported basis.

It is important to note that comparisons of projected fourth quarter results to prior year are impacted by the benefit from the extra week in the company’s fiscal 2009 calendar, a non-operating item, and foreign currency exchange rates.

Excluding $.09 per share for last year’s extra week and $.03 per share for the non-operating item, the company’s fourth quarter guidance represents a 78% to 83% increase over last year’s adjusted 46 cents in earnings per share. The company’s fourth quarter guidance reflects a consolidated comparable store sales increase of 5% to 7% in January, which is above the Company’s previous guidance.

Further, TJX now expects to repurchase $900 million to $1 billion of TJX stock in fiscal 2010, more than originally expected, which underscores management’s confidence in the business and would benefit fourth quarter earnings per share by a penny, which is reflected in the updated guidance.

With this updated outlook for the fourth quarter, the company is raising its guidance for full year fiscal 2010 earnings per share from continuing operations to be in the range of $2.72 to $2.74, up 31% to 32% over $2.08 per share last year on a reported basis. Excluding $.09 per share for last year’s extra week and $.07 per share for the non-operating items, the company’s full year guidance represents a 42% to 43% increase over last year’s adjusted $1.92 in earnings per share.