Is off-price losing its grip on apparel sales? TJX said Tuesday that comparable store sales rose 4 percent in the second quarter ended July 30—a smaller growth rate than the 6 percent increase reported a year ago, but an increase nonetheless. In the U.S., Marmaxx (TJ Maxx and Marshall’s) comps rose 4 percent, the same as last year, while same-store sales growth at Home Goods slowed from 9 percent to 5 percent.
Overall, net sales were up 7 percent to $7.9 billion and profits gained 5 percent over last year’s $549 million or 80 cents per diluted share to reach $562 million or 84 cents per diluted share. The company also raised its full-year guidance Tuesday, announcing that it now expects diluted earnings per share to be in the range of $3.39 and $3.43—a 2 percent to 3 percent increase over $3.33 in the prior fiscal.
Stronger sales in Europe and Israel weren’t enough to offset a softer topline performance in the U.S. in the second quarter ended June 30, causing sales at Delta Galil Industries to decline 2 percent from $255.5 million to $249.5 million. As a result, net income plunged 16 percent to $7.8 million or 30 cents per diluted share, compared to $9.3 million and 36 cents per diluted share last year. The company said it’s on track to launch new seam-free and cut-and-sew factories in Vietnam in the fourth quarter, as well as a sock factory in Q1 2017, which it expects to boost business next year and beyond.
Dick’s Sporting Goods
Sports Authority’s loss is Dick’s Sporting Goods (DKS) gain. The Pittsburgh-based retailer reported Tuesday that same-store sales at its namesake chain as well as Golf Galaxy increased 2.8% in the second quarter ended July 30—knocking the company’s guidance of -4 percent to -1 percent out of the park and beating last year’s 1.2% increase. Net sales rose 7.9%, from $1.8 billion to $1.97 billion, while net income reached $91.4 million or 82 cents per diluted share, an improvement on profits of $90.8 million or 77 cents per diluted share a year ago. As a result, Dick’s raised its full-year guidance to between $2.90 and $3.05 per diluted share.