The parent company of T.J. Maxx, Marshalls and HomeGoods reported increased traffic, high sales and profit last week. TJX reported $518 million in profit for the quarter that ended Aug. 2 and an increase in net sales of 7 percent to $6.9 billion. This report was up from $480 million profit last year. TJX's performance outpaced Wall Street’s expectations, leading the company to raise profit forecasts for the full year. According FactSet, TJX’s shares increased by 8.6 percent. This increase added $3.26 billion in market capitalization.
Although TJX surpassed projections, the past quarter was not as successful for other retailers. Macy’s and Wal-Mart have cut back their financial forecasts expecting sluggish traffic and heavy discounting. The heavy discounting is a benefit for TJX who buys some of its goods through closeouts to sell at discounted prices. The past winter created an opportunity for TJX when retailers were left with an excess of goods they couldn’t sell. Along with this buying opportunity, TJX has succeeded in improving customer traffic and puling in shoppers.