The TJX Companies net sales for the third quarter were 14.1 billion dollars, an increase of 6 percent, while comparable store sales increased by 3 percent. Net sales for the first nine months were 40 billion dollars, an increase of 6 percent with comparable store sales increase of 3 percent.

Net income for the quarter was 1.3 billion dollars and diluted earnings per share were 1.14 dollars, up 11 percent. For the first nine months, net income was 3.5 billion dollars and diluted earnings per share were 3.03 dollars, up 14 percent.

Commenting on the third quarter update, Ernie Herrman, CEO and president of The TJX Companies, Inc., stated: “Across the company, customer transactions drove our comp sales increases, which tells us that our values and treasure hunt shopping experience are appealing to a wide range of customers. With our above-plan profitability results in the third quarter, we are raising our full year guidance for pretax profit margin and earnings per share.”

TJX invests in Axo and Brands For Less

During the third quarter, TJX completed its investment in the joint venture with Grupo Axo, an operator of global brands in Mexico and South America that includes both full and off-price formats for 179 million dollars in cash. Under the terms of the definitive agreements, TJX owns 49 percent and Axo owns 51 percent of the joint venture.

After the end of the third quarter, the company completed its investment for a 35 percent minority equity stake in Brands For Less (BFL) for 344 million dollars. BFL is based in Dubai and is the region’s only major off-price branded apparel, toys, and home fashions retailer. BFL currently operates over 100 stores, primarily in the UAE and Saudi Arabia, as well as an e-commerce business.

During the quarter under review, the company increased its store count by 56 stores overall to a total of 5,057 stores.

TJX raises pre-tax profit margin and earnings outlook

For the fourth quarter, TJX continues to expect consolidated comparable store sales to be up 2 percent to 3 percent.

The company now expects pretax profit margin for the quarter to be in the range of 10.8 percent to 10.9 percent and diluted earnings per share to be in the range of 1.12 dollars to 1.14 dollars.

For the full year, the company continues to expect consolidated comparable store sales to be up 3 percent. Increasing its outlook, the company said it expects pretax profit margin to be 11.3 percent and diluted earnings per share to be in the range of 4.15 dollars to 4.17 dollars.