TJX Shares Hit 52-Week High on Earnings Beat and Raised Guidance

TJX Companies

joined the cheer on a surprising day of stronger-than-expected retail sales reports. The apparel and home furnishing company posted a 21 percent jump in second-quarter net income. TJX also posted a profit of $421.1 million, or 56 cents per share, up from $348.3 million, or 45 cents per share, in the same quarter last year. The Commerce Department's release of the July retail sales number of 0.8 percent was twice the 0.4 percent number economists and analysts were expecting. This represented the first positive figure in the past four months. The broad-based expansion was particularly evident in the apparel sector, as both low-end and high-end retailers scored impressive results. On the high-end side, Michael Kors Holdings

, the designer apparel and accessories maker, reported a first-quarter

to $414.9 million from the first quarter of fiscal 2012. The company also guided its profit outlook for second-quarter of 2013 higher, from 35 cents a share which tops analyst's estimates of 28 cents per share. On the discount end, TJX's said, for third-quarter 2013, the company expects diluted EPS to be in the range of 56 cents to 59 cents, or a growth of 6 percent to 11 percent from the prior-year quarter levels. The Zacks Consensus Estimate for third-quarter 2013 was 62 cents, higher than the company's guidance range. The guidance includes consolidated comparable-store sales growth of 2 percent to 4 percent. TJX stock price has had a sensational year. Share prices were trading near $31.86 per share in January and have steadily climbed to Tuesday's 52 week high price of $45.50 a share. Other off-price apparel retailers have also benefited from consumers' belt tightening. Ross Stores

, Stein Mart

and Wal-Mart

share prices have also enjoyed a steady ascent higher since January. Wal-Mart is expected to its second-quarter 2013 results before the bell on August 16. Jags Report provided some analysts' incites before today's earnings report. MKM Partners reissued their buy rating yesterday on TJX. Friday, analysts at Avondale Partners raised their price target on the stock from $51.00 to $55.00. Zacks left its neutral rating and a $46 price target in a research note August 10. There also was some interesting bullish trading in the options arena for TJX according to a report furnished by

The report said there was a spike in volume on the out-of-the-money September $42.50 strike. Open interest soared on August 10 by 13,147. The sell put strategy requires shares to closes above $42.50 through September expiration date in order to collect the premium. TJX shares closed New York trading near $45.02.