UPDATE: TJX Posts Downbeat Q1 Earnings

The TJX Companies

reported weaker-than-expected fiscal first-quarter earnings. TJX's quarterly profit surged to $454.3 million, or $0.64 per share, versus a year-ago profit of $452.9 million, or $0.62 per share. Its sales rose 5% to $6.49 billion. However, analysts were expecting earnings of $0.67 per share on sales of $6.6 billion. Its comparable store sales gained 1% in the quarter. Comparable store sales in TJX Canada fell 1%, while store sales in TJX Europe surged 8%. TJX raised its store count by a net of 37 stores during the first quarter. Carol Meyrowitz, Chief Executive Officer of The TJX Companies said, “For the first quarter, our consolidated comparable store sales increased 1%, and our earnings per share of $.64 were slightly below our expectations with a negative impact from foreign currency exchange rates that was larger than our guidance assumed. While sales were not as strong as we would have liked, predominantly in our apparel business, I was very pleased that overall business trends improved as the quarter progressed. Further, our inventories and expenses were well managed, which helped protect our margins. We enter the second quarter in an excellent position. We like our lean inventory levels, which enable us to capitalize on the plentiful buying opportunities we are seeing in the marketplace and ship great fashions, brands and quality merchandise to our stores at amazing values. Additionally, we have exciting marketing initiatives planned to drive customer traffic. We are very confident in our ability to achieve our plans for the remainder of 2014 and beyond as we continue to bring value around the world!” TJX expects a profit of $0.70 to $0.74 per share for the second quarter and $3.05 to $3.17 per share for the full year. Analysts expected a profit of $0.74 per share for the quarter and $3.18 per share for the full year. TJX shares fell 0.27% to close at $58.40 yesterday.