Home / Business and Economy / TJX Sales Surge: Profit and Earnings Soar Past Expectations
TJX Sales Surge: Profit and Earnings Soar Past Expectations
20 Nov
Summary
- Comp sales grew 5% with higher average basket and customer transactions.
- Pretax profit margin rose to 12.7%, up 40 basis points from last year.
- Diluted earnings per share increased 12% to $1.28 compared to last year.
TJX Companies Inc. announced strong third-quarter results, highlighted by a 5% increase in comparable store sales. This performance surpassed the company's projections, driven by enhanced customer spending and a greater number of transactions.
Profitability saw a notable boost, with the pretax profit margin expanding by 40 basis points to 12.7%. This improvement was largely attributed to a 100 basis point increase in gross margin, stemming from reduced freight costs and operational efficiencies. Diluted earnings per share also climbed by 12% compared to the previous year, reaching $1.28.
Looking ahead, TJX is well-positioned for the crucial holiday season, having experienced a strong start to the fourth quarter. The company raised its full-year guidance for both sales and profitability, reflecting confidence in its continued momentum and the availability of desirable branded merchandise.
