Maxx Is Back

Same-store sales at TJX Companies (NYSE: TJX  ) rose 5% in June. Beating the Street's forecast and going back-to-back following better-than-expected results in May, management boosted its second-quarter earnings expectations to $0.34-$0.36 a share. Its previous guidance was $0.32-$0.34. I'm sure there are factors pinching consumers, but this is proof that you can still have good results with the proper business model and execution.

I've always liked TJX's business. It offers high-quality, name-brand merchandise at a discount. Who wouldn't find this compelling? My wife sure does. The company targets middle- and upper-middle-income consumers at most of its chains, including T.J. Maxx, Marshalls, and A.J. Wright.

Some of its competitors did not fare as well last month. Kohl's (NYSE: KSS  ) comps were down 4.9%, and Macy's (NYSE: M  ) dropped 2.7%. Each has problems that can only benefit TJX. Kohl's has the very annoying habit of putting items on sale a day before the official announcement. Personally, I've gone there many times only to find sale items out of stock. Macy's, on the other hand, has departments on different ends of the same mall, as a result of the May-Federated merger. This makes for plenty of circling and backtracking. Target (NYSE: TGT  ) reported a same-store sale increase of 3.3%, but this was at the low end of the company's 3%-5% guidance.

TJX initially stumbled regarding the situation of computer intrusions. Although it waited a month before notifying customers about the breach to its computer network, it has since handled the situation admirably. It has addressed the situation head-on, and customers continue shopping without worry. Here is a letter written by Carol Meyrowitz, president and CEO, shortly after discovering the breach.

I'm impressed with TJX's results. If it continues executing its business plans well, the share price will be rising, and the only off-price items will be its merchandise.

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Fool contributor Larry Rothman is happy to receive feedback, and promises to read it when not being wrestled by his three children. He doesn't have any positions in the companies mentioned. The Fool has a disclosure policy.