TJX profit up 17% but disappoints Wall Street
Grant Welker
Sales of the TJX division that includes T.J.Maxx fell by 1 percent in the third quarter.
TJX saw net income rise 17 percent in the third quarter, hitting $641 million, on a sales increase of 6 percent to $8.8 billion, the Framingham retailer announced Tuesday.
Despite the rise in sales and profitability, comparable store sales were flat, and TJX's stock price fell by around 4.5 percent through the middle of the afternoon Tuesday.
Sales "were not as strong as we would have liked," TJX President and CEO Ernie Herrman said. Herrman attributed the disappointing results in part to several hurricanes to hit the United States and to above-average temperatures through much of the country.
TJX's Marmaxx division, which includes the company's T.J.Maxx and Marshalls stores, saw same-store sales fall by 1 percent after a 5-percent increase in the same period last year.
Sales in the HomeGoods division rose by 3 percent, and TJX sales in Canada rose by 4 percent.
The third quarter marked the opening of TJX's new chain, HomeSense, which is included in the HomeGoods division. The chain has three locations, including one in Framingham.
Despite Tuesday's disappointing results, TJX sales have risen by 5 percent this year to $24.9 billion.
WBJ Web Partners
Most Recent
Most Recent
0 Comments