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FRAMINGHAM, United States — TJX reported better-than-expected quarterly same-store sales on Tuesday, as deep discounts brought more bargain hunters into its T.J. Maxx and Marshalls apparel stores.
Online shopping has taken a toll on traditional brick-and-mortar stores, but TJX unlike other retailers has not seen huge cuts in inventory and store closures.
TJX does not advertise brands. It instead encourages shoppers to go on a "treasure hunt" through aisles to find deals on products or brands that would otherwise be out of reach.
The company sometimes offers coats and apparel from high-end brands like Michael Kors and Versace at half the price of other retailers.
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"The treasure hunt nature continues to drive new interest, new people and more visits by current customers", said Brian Yarbrough, an analyst with Edward Jones, adding that the company's products, prices and inventory management disprove the notion that TJX needs a bigger online presence.
TJX reported a 3 percent rise in comparable store sales for the first quarter, compared with the 2.5 percent increase analysts had expected, marking the seventh time in nine quarters the company has beat estimates.
The company also raised its full-year adjusted profit forecast to $4.04 to $4.10 per share, from $4.00 to $4.08, helping send its shares up 2 percent in morning trading.
The company's net income soared 33.6 percent to $716.4 million, or $1.13 per share, in the quarter ended May 5, from a year earlier.
The Framingham, Mass.-based company posted an 11.6 percent rise in net sales to $8.69 billion, beating analysts' estimate of $8.47 billion, according to Thomson Reuters I/B/E/S.
By Uday Sampath; Editor: Maju Samuel.