From FRAMINGHAM, Massachusetts - close all its A.J. Wright stores and reopening much like TJMaxx, Marshalls or HomeGoods stores TJX Cos.' net net drop of 20% in the first quarter.
But client traffic improved overall as shoppers always seeks deals, the company said Tuesday.
TJX, which flourished in the weakness of the economy with steep discounts couturier clothing, won $ 266 million, or 67 cents per share, for the period ended April 30. It is bottom of 331.4 million, or 80 cents per share, a year earlier, when the company had more shares outstanding.
Its adjusted quarterly net income dropped to 78 cents per share of 80 cents per share. This fell short of expectations, as analysts forecast average 80 cents per share, according to FactSet.
Shares of TJX fell from $2.25, or 4.1%, to close Tuesday at $ 52.05 through 52.06. Last year, the stock has traded in a range of $39.56 at $54.94.
Income discounter has increased from 4% to 5.22 billion, surpassing the average Wall Street forecast for 5.14 billion.
In a conference call, CEO Carol Meyrowitz said that TJX would probably reported sales for the period, except for the bad weather that has swept most of the countries and regions of the Canada.
Improvement of traffic for the client of the neighbourhood is a sign that buyers are always looking for deals even when the economic situation improves. Meyrowitz, said TJX customer traffic has increased in the range of percentage teens over the past two years.
"It us indicated that value remains top of mind for consumers", she said.
TJX has raised the lower end of its prospects for gains throughout the year. The company now expects adjusted earnings of $ 3.81-3.83 per share for the year and the hundred 81 to 86 cents per share for the current quarter.
Analysts predict annual revenues of $3.89 per share in the second quarter of the earnings of 85 cents per share.
In the first quarter, TJX acquired 7.1 million shares of its common shares at a price of $ 361 million under a $ 1 billion stock buyback plan approved in February 2010 and another plan of 1 billion authorized in February of this year. That move boost helped earnings per share by reducing shares of the company. In all fiscal 2012, TJX expected to buy back 1.2 billion of its shares.
Its stock at the end of the quarter has a value of 3 billion dollars, up to $ 2.6 billion a year earlier.
The company transformed 90 A.J. Wright stores former T.J. Maxx, Marshalls or HomeGoods stores and closed the remaining 72 stores more than two distribution centres of A.J. Wright and Office to the House of the string.
The process began in the fourth quarter of last year, 20 stores were closed by January 29, and most of the cost of the consolidation has been recognized in the results of the company in the fourth quarter. But, TJX reported a loss of 49 million for A.J. Wright in the first quarter to reflect the closure, conversion, and the reopening of the costs.
Meyrowitz said she is satisfied how the converted stores carry out so far.
"If this continues, it bodes extremely for goods banners home page and other stores under the Marmaxx opportunities long term," she said.
The Framingham, Massachusetts, company said its revenue at stores open at least a year increased 2% overall. The comparison is an important indicator of the underlying financial health of a retailer because that it excludes the stores that have recently closed or open.
TJX net store count has dropped from 38 stores. It operates 2,821 stores throughout the United States and the Canada and in Europe.
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