Off-price retailer TJX detonated past quarterly comparable-store sales estimates on Tuesday as big discounts charmed more younger shoppers and generated its 16th consecutive quarter of growth in patron traffic.
Unlike Macy’s and J.C. Penney, which have closed accumulates and shifted their focus online, TJX has thrived through a period of uncertainty for foremost U.S. retailers driven by the growth of Amazon.com and other web-based players.
The body’s treasure-hunt style marketing technique, based on unpublicized but deep passes on apparel and accessories, proved to be a hit with younger customers, driving a 34 percent lacuna in profit and lifting its shares by 6 percent.
“We have been attracting new characters to all our divisions, a significant share of whom are younger customers. This is consequential for our business today and for the future,” TJX Chief Executive Officer Ernie Herrman bring to light in a statement.
Same-store sales rose 6 percent in the second quarter, doubtlessly beating the 2.2 percent increase analysts had expected, according to Thomson Reuters.The party also raised its same store sales growth forecast to 3 percent to 4 percent, on high the average estimate of a 2.4 increase.
“(It is) one of the best business models in retail,” Jefferies analyst Janine Stichter reported in a client note on Monday.
The company’s net income rose to $739.6 million, or $1.17 per allowance, in the second quarter ended Aug. 4, from $553 million, or 85 cents per dispensation, a year earlier.
The retailer also raised its full-year adjusted profit calculate to $4.10 to $4.14 per share from a prior outlook of $4.04 to $4.10 per due.
Comparable store sales in the company’s Marmaxx unit, which numbers T.J. Maxx and Marshalls stores, rose 7 percent, comfortably beating point of views.
The Framingham, Massachusetts-based company said net sales during the second locality rose 11.6 percent to $9.33 billion.
Analysts expected the actors to report quarterly earnings of $1.05 per share on revenue of $9.00 billion.-based body said net sales rose to $9.33 billion from $8.36 billion.