USA : Net sales soar at apparel & home fashions retailer

The TJX Companies Inc announced sales and earnings results for the third quarter ended October 27, 2007. Net sales from continuing operations for the third quarter of fiscal 2008 increased 6% to $4.7 billion, and consolidated comparable store sales increased 3% over last year.
Net income from continuing operations for the third quarter was $249 million and diluted earnings per share from continuing operations were $.54, a 13% increase over last year’s $.48.
For the first nine months of fiscal 2008, net sales from continuing operations were $13.2 billion, a 7% increase over last year, and consolidated comparable store sales increased 3% over the prior year.
Net income from continuing operations was $471 million and diluted earnings per share from continuing operations were $1.00, compared to $1.12 in the prior year period.
These year-to-date, fiscal 2008 earnings results reflect after-tax charges of $130 million, or $.28 per share, related to the previously reported unauthorized computer intrusion(s). Excluding these charges, adjusted diluted earnings per share from continuing operations for the first nine months of fiscal 2008 were $1.28, a 14% increase over $1.12 for the prior year.
Carol Meyrowitz, President and Chief Executive Officer of The TJX Companies Inc, stated, “I am very pleased with our third quarter performance. The 13% increase in earnings per share from continuing operations was achieved on top of a very strong 50% increase last year, clearly demonstrating our ability to deliver sustained earnings growth, even in difficult environments and against tough comparisons.

These results were achieved through solid execution of the off-price model, specifically our disciplined management of inventories and open-to-buy, as well as our continued focus on cost reduction. While sales were slightly below plan, we believe this was mostly due to unseasonably warm weather through the majority of September and October.
Importantly, as the weather cooled towards the end of the quarter, we saw a strong surge in sales and demand for cold weather apparel.
We enter the fourth quarter with very clean, fresh inventories, and significantly more liquidity than at this time last year, which positions us well to take advantage of a market full of buying opportunities and flow great gift product throughout the holiday selling season.”