Off-price retailer TJX Cos. Inc. raised its forecast for third-quarter earnings Monday above analysts' estimates, saying sales in October were coming in significantly above its expectations.
TJX shares rose 2 per cent in extended trade.
TJX, whose chains include T.J. Maxx, Marshalls and HomeGoods, along with Winners and HomeSense in Canada, buys excess apparel, accessories and home goods in bulk to sell them at deep discount. It has benefited as consumers seek bargains and cut spending on nonessential purchases.
TJX said it expects earnings per share from continuing operations of 77 cents (U.S.) to 79 cents in the third quarter, based on consolidated same-store sales growth of 7 per cent in the period.
Analysts, on average, have been expecting third-quarter earnings of 74 cents per share, according to Thomson Reuters I/B/E/S.
Monday's announcement was the second time TJX has raised its third-quarter forecast this month. On Oct. 8, the company raised its earnings per share view to a range of 71 cents to 74 cents.
As result of the better-than-expected third quarter, the company raised its view of full-year earnings for fiscal 2010 to a range of $2.46 to $2.54 per share. That is based on estimated consolidated same-store sales growth of 4 per cent to 5 per cent for the year.
Wall Street, on average, has been expecting $2.49 per share, on average.
The company said its earnings per share growth target for the three-year period ending in fiscal 2013 remains at 12 per cent. But it said it should significantly exceed that rate in the current fiscal year.
Shares of TJX - which are up 90 per cent since January and up 5 per cent since Oct. 1 - rose 1.7 per cent in after-hours trading to $39.73 from their close of $39.06, up 2 per cent.