FRAMINGHAM – Shares of TJX Companies Inc. hit an all-time high during intraday trading on Tuesday, after the low-cost retailer reported third-quarter sales and profits that exceeded 20% and beat analysts’ expectations.
The company, which operates chains TJ Maxx, Marshalls and HomeGoods, also raised its share buyback plan for the current fiscal year by $ 500 million, to between $ 1.75 and $ 2 billion.
For the three-month period ending Oct. 30, TJX reported net income of just over $ 1 billion, or 84 cents per share, on sales of $ 12.5 billion.
These results easily exceeded the expectations of analysts, who were forecasting earnings of 81 cents a share on revenues of $ 12.2 billion.
A year earlier, the company earned $ 866.7 million (71 cents per share) on sales of $ 10.1 billion.
In a statement, CEO Ernie Herrman said TJX was “extremely well positioned” for the holiday season, noting that same-store sales that were open last year and this year increased 14% in the third. trimester and remain “up in mid-teens” at the start of the current trimester.
âWe pride ourselves on our ability to provide customers with an exciting mix of gift products and incredible brands and values ââthroughout the holiday sales season,â Herrman said.
The financial results were announced Tuesday morning, before the opening bell of the stock market. And investors reacted immediately, pushing the stock to a record high of $ 76.94 in the first hour of the session before leveling off a bit later in the day.
Shares of TJX closed Tuesday at $ 73.55, up $ 4.05 (5.8%), on the New York Stock Exchange. Almost 21.2 million shares changed hands, more than three times the typical daily stock volume.
The news of the increase in share buybacks also delighted investors, as the move reduces the number of shares outstanding, which in turn increases the company’s earnings per share.
Since the start of the year, shares have advanced 9.3%.
Headquartered at 770 Cochituate Road (Route 30) in Framingham, TJX is one of the leading low cost retailers in the United States and around the world. Its products range from family clothes and fashion for the home to fine jewelry.
At the end of the last quarter, the company operated 4,684 stores in nine countries and five e-commerce sites. These included 1,285 TJ Maxx stores, 1,148 Marshalls stores and 850 HomeGoods stores.