According to news from CNBC, as a result, the company’s shares rose as much as 8.6 percent to $83.95 in early trading on Wednesday.
During the holiday quarter, Massachusetts-based TJX raised its quarterly dividend by 25 percent to $0.39 per share, reporting that it would repurchase about $2.5 billion to $3 billion worth of its shares this fiscal year. In addition, same-store sales rose 4 percent, beating estimates of 2.1 percent.
“We see abundant opportunities in the marketplace for major brands and high-quality merchandise and are pursuing numerous initiatives to keep driving sales and customer traffic,” Chief Executive Officer Ernie Herrman said.
Marmaxx, the company’s largest and most profitable unit that includes T.J.Maxx and Marshalls, recorded comparable store sales rose 3 percent and beat estimates of 1.5 percent.
For the first quarter, TJX also forecast adjusted earnings of $0.85 to $0.87 per share, below average analysts’ estimate of $0.99 per share. Excluding items, the company earned $1.19 per share. Net sales rose 15.8 percent to $10.96 billion. Analysts, on average, expected the company to earn $1.28 per share on revenue of $10.76 billion.
TJX’s continued success prompted the company to announce last year that it was opening up a new home goods store dubbed HomeSense. GlobalData Retail’s Managing Director, Neil Saunders, wrote to clients about TJX’s new store launch, commenting that HomeSense “will allow the company to better take advantage of the strong growth in home retail and to grow its presence in categories like furniture and larger furnishing items, which are a relatively weak part of the HomeGoods proposition.”