Strong Holiday Sales for TJX Help Off-Price Retailer

TJX Cos, Inc, the owner of Marshalls and T.J. Maxx retail chains that specialize in off prices, posted quarterly sales that were higher than had been expected, as it was able to attract more shoppers who were hungry for bargains during the holiday shopping season.

TJX also announced that it would be buying back between $1.5 billion and $2.0 billion in stock and forecast profit for the full year that was well above estimates of analysts.

Shares of the retailer were up 1% in trading late Wednesday. TJX, which sells brands of apparel such as Juicy Couture and Dolce and Gabbana at prices up to 80% off said that sales at its stores that were opened for longer than a year rose by 6% during its fourth quarter.

Analysts were expecting an increase of 3%.

During the holiday season, retailers specializing in off-prices were a popular destination for a large number of shoppers from the middle class and upper-middle class that were searching for brand names at bargain prices, said one industry analyst.

TJX forecast between $3.29 and $3.38 a share profit for its year than ends on January 28. 2017. Analysts were expecting profit for 2017 to be forecast at $3.29 a share.

Ernie Herrman the CEO said that 2016 was off to a strong beginning and the company had a number of initiatives planned that will keep driving sales as well as customer traffic.

TJX experienced an increase of 2.8% in net income to end the quarter at $666.5 million equal to 99 cents a share, for its quarter ending January 30.

Net sales were up 7.9% to end the quarter at $896 billion, topping expectations of analysts for $8.73 billion.

The retailer raised its quarterly dividend by between 24 cents and 26 cents a share.

The off-price retailer also has increased his quarterly dividend by 24% to 26 cents a share.

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