TJX Continues Strong Performance

The TJX Companies, Inc. (TJX - Analyst Report), the parent company of TJ Maxx, reported earlier today that its sales for the month of September were up 8% year over year at $2.0 billion.

Consolidated comparable store sales increased 7% compared to last year. The company said that the strong trends that it witnessed in August continued in September and the customer traffic counts accelerated beyond the already high levels.

Fiscal 2010 year-to-date sales were up 4% at $12.6 billion, compared to $12.2 billion in the fiscal 2009 period. Year-to-date consolidated comparable store sales increased 4% from the year-ago level.

With higher-than-expected sales in the months of August and September, and higher visibility into future trends, TJX increased its earnings guidance for the third and fourth quarters of fiscal 2010.

TJX now forecasts earnings in the range of 71 cents to 74 cents per share for the third quarter, compared to 58 cents in previous year quarter. The company expects a 5%-6% rise in October consolidated comparable store sales. The previous guidance for the quarter was 62 to 68 cents per share.

For the fourth quarter, TJX now expects EPS in the range of 60 cents to 66 cents, compared to the earlier guidance range of 55 cents to 61 cents and prior year EPS of 58 cents. This guidance is based on the expectations of 3%-5% increase in the fourth quarter consolidated comparable store sales.

Also, reflecting its confidence in delivering strong sales and earnings growth, TJX recently authorized a new stock repurchase program of up to $1 billion. This was in addition to the approximately $367 million remaining under the existing stock repurchase program.

Read the full analyst report on TJX