FRAMINGHAM, Mass. (AP) — The parent company of T.J. Maxx and Marshalls clothing stores saw net income rise 14 percent during the second quarter, with savvy shoppers continuing to flock to its stores for discounts on designer goods and other wares.
TJX Cos. beat Wall Street expectations, and the company boosted its profit outlook for the year.
Shares jumped more than 6 percent in afternoon trading and hovered near its 52-week high.
TJX is one of the few retailers to post strong quarterly results this earnings season. Wal-Mart Stores Inc. and Macy's Inc. fell short of expectations and lowered their forecasts last week. J.C. Penney reported another huge quarterly loss Tuesday.
TJX earned $479.6 million, or 66 cents per share, in the most recent period. That's up from $421.1 million, or 56 cents per share, in the same quarter last year.
Analysts expected earnings of 63 cents per share, according to a FactSet survey.
Revenue rose 8 percent to $6.44 billion from $5.95 billion, above Wall Street's estimate of $6.37 billion. The company experienced better traffic in the period, and shoppers spent more per transaction.
Revenue at stores open at least a year climbed 4 percent, with the strongest increases in its European stores and its HomeGoods chain. This metric is a key indicator of a retailer's health because it excludes results from stores recently opened or closed.
One other retailer posting earnings Tuesday was Home Depot, which topped most expectations. An emerging trend suggests that suggests Americans are starting to spend money again as the recession fades in the distance, but they appear to be less willing to spend as freely as they did in the past on clothing and other items, instead holding out for sales and hitting up discount stores and outlets.
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