Marshalls Owner TJX Surges After Sales Blow Past Estimates
(Bloomberg) -- TJX Cos., owner of the Marshalls and TJ Maxx chains, jumped the most in two years after posting sales that far outpaced Wall Street estimates.
Comparable stores sales -- a key metric for retailers -- grew by 6% in the fourth quarter, the company said Wednesday. That was almost double the 3.2% growth analysts had predicted, according to Consensus Metrix.
The results show that off-price retailers like TJX are faring better than traditional department and apparel stores at a time when consumer buying habits shift toward online purchases and more experience-based shopping.
“We saw strength across the company, with each major division delivering comp sales growth of 4% or higher,” Chief Executive Officer Ernie Herrman said in a statement. He said that growth was driven primarily by customer traffic.
Shares of TJX climbed as much as 8.8% in New York, the biggest intraday gain since February 2018. The stock had dropped 2.2% this year through Tuesday’s close, after advancing 36% last year.
The company also reported profit and revenue that topped estimates last quarter, which ended on Feb. 1. Its earnings forecast for the current year of $2.77 to $2.83 per share, however, fell short of analysts’ average $2.86 projection.
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