TJX’s Comps Slide 1%, Lowers Guidance

The TJX Cos., Inc. reported sales rose 3% in the five weeks ended October 4, to $1.78 billion. Comps decreased 1%.

The company is lowering its guidance for third quarter earnings per share from continuing operations to the range of 55 cents to 58 cents primarily to reflect lower-than-expected sales. This range is based upon estimated consolidated comparable store sales growth for the quarter of approximately flat to 1%. It assumes a negative impact from foreign exchange rates of 1 cent per share and represents a 2% to 7% increase over the 54 cents in diluted earnings per share in the prior year.

Foreign currency exchange rates negatively impacted September comparable store sales by two percentage points, which was unanticipated in the company’s prior guidance. Excluding the impact of foreign currency exchange rates, consolidated comparable store sales increased 1% for the month.

 

For the 35 weeks ended October 4, 2008, sales reached $12.2 billion, up 6% over the $11.5 billion achieved during the 35 weeks ended October 6, 2007. Comparable store sales increased 3%.
 
Carol Meyrowitz, president and CEO, stated, “Although September consolidated comparable store sales were below plan, customer transactions were up across virtually all divisions. Also, despite economic concerns internationally, our divisions in these markets had strong performance. With the volatile economic environment in the U.S. and a generally warmer September than last year, we were pleased to see sales trends in the U.S. dramatically improve at the end of the month as the weather turned more seasonable in key regions. While we believe that consumers are worried, we also believe that with the right execution of our resilient business model, our financial strength, extremely well controlled inventories, strong merchandise margins, and the excellent values we offer our customers, we are in an excellent position going into the holiday season.”

Reflecting its updated guidance, the company now expects full year Fiscal 2009 diluted earnings per share from continuing operations to be in the range of $2.26 to $2.31 with consolidated comparable store sales growth of approximately 2%. This guidance includes an expected 9 cents a share benefit from the 53rd week in the company’s Fiscal 2009 fourth quarter and the 2 cents a share benefit from unanticipated tax-related adjustments in the first quarter of Fiscal 2009. Last year’s results included a charge of $.25 per share related to the previously announced computer intrusion(s). Excluding these items, full year Fiscal 2009 adjusted diluted earnings per share from continuing operations are estimated to be in the range of $2.15 to $2.20, an increase of 11% to 14% over the prior year’s adjusted $1.93.

About The Author

Thomas J. Ryan

Thomas J. Ryan Senior Business Editor | SGB Media tryan@sgbonline.com | 917.375.4699

TJX’s Comps Slide 1%, Lowers Guidance

The TJX Cos., Inc. reported sales rose 3% in the five weeks ended October 4, to $1.83 billion. Comps decreased 1%.


The company is lowering its guidance for third quarter earnings per share from continuing operations to the range of 55 cents to 58 cents primarily to reflect lower-than-expected sales. This range is based upon estimated consolidated comparable store sales growth for the quarter of approximately flat to 1%. It assumes a negative impact from foreign exchange rates of 1 cent per share and represents a 2% to 7% increase over the 54 cents in diluted earnings per share in the prior year.



Foreign currency exchange rates negatively impacted September comparable store sales by two percentage points, which was unanticipated in the company’s prior guidance. Excluding the impact of foreign currency exchange rates, consolidated comparable store sales increased 1% for the month.
 

For the 35 weeks ended October 4, 2008, sales reached $12.2 billion, up 6% over the $11.5 billion achieved during the 35 weeks ended October 6, 2007. Comparable store sales increased 3%.

 

Carol Meyrowitz, president and CEO, stated, “Although September consolidated comparable store sales were below plan, customer transactions were up across virtually all divisions. Also, despite economic concerns internationally, our divisions in these markets had strong performance. With the volatile economic environment in the U.S. and a generally warmer September than last year, we were pleased to see sales trends in the U.S. dramatically improve at the end of the month as the weather turned more seasonable in key regions. While we believe that consumers are worried, we also believe that with the right execution of our resilient business model, our financial strength, extremely well controlled inventories, strong merchandise margins, and the excellent values we offer our customers, we are in an excellent position going into the holiday season.”

Reflecting its updated guidance, the company now expects full year Fiscal 2009 diluted earnings per share from continuing operations to be in the range of $2.26 to $2.31 with consolidated comparable store sales growth of approximately 2%. This guidance includes an expected 9 cents a share benefit from the 53rd week in the company’s Fiscal 2009 fourth quarter and the 2 cents a share benefit from unanticipated tax-related adjustments in the first quarter of Fiscal 2009. Last year’s results included a charge of 25 cents per share related to the previously announced computer intrusion(s). Excluding these items, full year Fiscal 2009 adjusted diluted earnings per share from continuing operations are estimated to be in the range of $2.15 to $2.20, an increase of 11% to 14% over the prior year’s adjusted $1.93.

About The Author

Thomas J. Ryan

Thomas J. Ryan Senior Business Editor | SGB Media tryan@sgbonline.com | 917.375.4699

TJX’s Comps Slide 1%, Lowers Guidance

The TJX Cos., Inc. reported sales rose 3% in the five weeks ended October 4, to $1.78 billion. Comps decreased 1%.


The company is lowering its guidance for third quarter earnings per share from continuing operations to the range of 55 cents to 58 cents primarily to reflect lower-than-expected sales. This range is based upon estimated consolidated comparable store sales growth for the quarter of approximately flat to 1%. It assumes a negative impact from foreign exchange rates of one cent per share and represents a 2% to 7% increase over the 54 cents a share in diluted earnings per share in the prior year.



Foreign currency exchange rates negatively impacted September comparable store sales by two percentage points, which was unanticipated in the company’s prior guidance. Excluding the impact of foreign currency exchange rates, consolidated comparable store sales increased 1% for the month.
 

For the 35 weeks ended October 4, 2008, sales reached $12.2 billion, up 6% over the $11.5 billion achieved during the 35 weeks ended October 6, 2007. Comparable store sales increased 3%.

 

Carol Meyrowitz, president and CEO, stated, “Although September consolidated comparable store sales were below plan, customer transactions were up across virtually all divisions. Also, despite economic concerns internationally, our divisions in these markets had strong performance. With the volatile economic environment in the U.S. and a generally warmer September than last year, we were pleased to see sales trends in the U.S. dramatically improve at the end of the month as the weather turned more seasonable in key regions. While we believe that consumers are worried, we also believe that with the right execution of our resilient business model, our financial strength, extremely well controlled inventories, strong merchandise margins, and the excellent values we offer our customers, we are in an excellent position going into the holiday season.”

Reflecting its updated guidance, the company now expects full year Fiscal 2009 diluted earnings per share from continuing operations to be in the range of $2.26 to $2.31 with consolidated comparable store sales growth of approximately 2%. This guidance includes an expected 9 cents a share benefit from the 53rd week in the company’s Fiscal 2009 fourth quarter and the 2 cents a share benefit from unanticipated tax-related adjustments in the first quarter of Fiscal 2009. Last year’s results included a charge of 25 cents per share related to the previously announced computer intrusion(s). Excluding these items, full year Fiscal 2009 adjusted diluted earnings per share from continuing operations are estimated to be in the range of $2.15 to $2.20, an increase of 11% to 14% over the prior year’s adjusted $1.93.

About The Author

Thomas J. Ryan

Thomas J. Ryan Senior Business Editor | SGB Media tryan@sgbonline.com | 917.375.4699

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