The US-based parent company of discount retailer TK Maxx has reported better-than-expected quarterly same-store sales, thanks to an increase in bargain hunters entering their stores.
TJX Cos Inc reported a three per cent rise in comparable store sales — a measure of sales in stores open at least 12 months — for its first quarter ending May 5.
This was better than the 2.5 per cent increase analysts had expected and made it the seventh time in nine quarters that the company has beaten estimates.
Meanwhile, total sales rose 11.6 per cent from a year ago to $8.69 billion (£6.47 billion), against expectations for $8.47 billion, according to a Thomson Reuters poll.
Net income also came in better than expected, rising 33.6 per cent to $716.4 million compared with $536.3 million in the same period last year.
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 two per cent.
While online shopping has taken a toll on many other traditional brick-and-mortar retailers, TJX has not seen huge cuts in inventory or store closures.
It credits the “treasure hunt” nature of the business and the fact it does not advertise brands for driving its sales.
Instead, customers are encouraged to trawl the aisles to find deals on products or brands – many of which are high-end brands.
“Customer traffic was once again the primary driver of our comparable store sales increases at each of our four large divisions,” chief executive Ernie Herrman said.
He added: “We believe that the consistency of our customer traffic increases demonstrates the strength and resiliency of our business and our ability to succeed through many types of economic and retail environments.
“Looking ahead, the second quarter is off to a strong start and we see plentiful opportunities to capitalise on the exciting fashions and brands available to us in the marketplace.”