Back to top

Analyst Blog

Zacks Equity Research

TJX's Oct Comps Solid, Ups Outlook

TJX KSS

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Consolidated same-store sales at The TJX Companies Inc. (TJX - Analyst Report), an off-price retailer of apparel and home fashions, climbed 7.0% year over year in the four-week period ended October 27, 2012. As for total sales, it climbed 11.0% year over year for the aforementioned period to $2.1 billion.

As for the 39-week period ended October 27, 2012, comparable sales climbed 8% from the year-ago period. Total sales for the same period went up 10.0% year over year to $18.2 billion.

Comparable sales jumped once again on the back of higher customer traffic in the U.S., Canada and Europe divisions. TJX Europe delivered growth of 11% during the four-week period ended October 27, 2012 despite economic uncertainties in the region.

Guidance Update

Following strong October comparable store sales, TJX raised its outlook for the third quarter and fiscal year 2013. TJX is slated to release its third quarter results on November 13 and expects adjusted earnings to be approximately 63 cents in the quarter. The company previously guided its adjusted earnings at the higher end of the 56 to 59 cents per share range.

For fiscal year 2013, the company expects adjusted earnings in the range of $2.46–$2.49 per share.

Our Recommendation

TJX has been reporting an increase in comparable store sales for the past several quarters driven by higher demand and increased consumer traffic.

We are encouraged by the company’s flexible off-price business model that allows it to act according to market trends. TJX has a low-cost structure compared to many other traditional retailers. It focuses aggressively on reducing expenses across its segments.

Its close competitor, Kohl's Corporation (KSS - Analyst Report) reported a 3.3% increase in comparable store sales for the four-week period ended October 27, 2012. Total sales also jumped 4.6% to $1.39 billion during the same period.

The TJX Companies carries a Zacks #2 Rank (short-term Buy rating). Over the long-term, the stock has a Neutral recommendation.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%