TJX sales up 7%; profits down 6%
Sales and profits took a different direction in the latest earnings report from Framingham’s TJX, with sales growing by 7 percent and net income declining by 6.3 percent year-over-year for the third quarter of the 2017 fiscal year.
While technically a decline, the off-price retailer still enjoyed $549.8 million in net income. In a press release, TJX attributed part of the disconnect between strong sales and sagging income as a result of foreign currency influence, a $52-million debt extinguishment charge and a $31-million lump sum pension payout.
While the company downplayed this decline in income, it highlighted its $8.3 billion in sales, which represent a 7 percent year-over-year growth for the third quarter. The biggest gains were an 8-percent increase in TJX Canada while TJX International was the poorest performer with no year-over-year increase.
The overall strong performance from the quarter resulted in the company increasing its year-end estimated diluted GAAP earnings per share to between $3.39 and $3.41 and adjusted EPS of $3.46 to $3.48 (which excludes the debt extinguishment and pension settlement charges), versus prior guidance of $3.39 to $3.43.
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