FRAMINGHAM, Massachusetts — The parent of off-price retailers T.J. Maxx and Marshalls says more shoppers are coming to its stores, and its shares climbed 7 percent after it raised its outlook.
The TJX Cos. posted a bigger profit and stronger sales than Wall Street expected. It also reported greater growth in sales at stores open at least a year, an important measurement of a retailer's performance. Shares of TJX were the largest gainer on the S&P 500 index Tuesday, rising $5.17 to $76.78.
The company said Tuesday its net income grew 6 percent to $549.3 million, or 80 cents per share, while revenue increased 6 percent to $7.36 billion.
Analysts expected net income of 76 cents per share and $7.27 billion in revenue, according to a Zacks Investment Research survey.
The Framingham, Massachusetts-based company said sales at locations open for at least one year rose 6 percent over the three months that ended on Aug. 1. According to FactSet, that's twice what analysts expected. The figure leaves out results from stores that have opened or closed within the last year to give a view of how a company's remaining locations are doing.
TJX said those sales rose because more shoppers came to its stores.
TJX raised its profit forecast, saying it expects to earn $3.24 to $3.28 per share for the year. It had called for net income of $3.21 to $3.27 per share.
According to FactSet, analysts are projecting a larger profit of $3.30 per share.
The report also gave a lift to shares of competitor Ross Stores, the parent of Ross Dress for Less. Ross Stores Inc. is scheduled to announce its second-quarter results Thursday afternoon, and it logged the second-biggest gain on the S&P 500, rising 3.7 percent to $56.53.
TJX shares have climbed 12 percent in 2015 and are up 42 percent over the last 12 months.
In addition to T.J. Maxx and Marshalls, the company's brands include HomeGoods, HomeSense and Winners stores.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on TJX at http://www.zacks.com/ap/TJX
Keywords: TJX, Earnings Report