Off-price retailer The TJX Companies has posted net sales of $13.3 billion for the third quarter, a year-on-year increase of 9 per cent.

Overall comp store sales were up 6 per cent, which the company said was above its plan and driven by customer traffic. Net income also jumped 13 per cent to $1.2 billion.

GlobalData MD Neil Saunders described the sales growth as a “knock-it-out-the-park performance”, as more shoppers are drawn into the off-price space, especially in apparel.

“While this wind of fortune is certainly blowing in TJX’s favor, the company is competing for the gains with a raft of established players and growing newer entrants like Macy’s Backstage.

“As such, it deserves credit for taking an outsized share of new customers because of its strong ranges which are, in turn, the result of an excellent buying operation,” Saunders elaborated.

By division, Marmaxx and HomeGoods saw net sales increase by 9 and 13 per cent, respectively. TJX Canada posted a sales increase of 2 per cent while TJX International (its Europe & Australia division) reported a sales growth of 10 per cent.

This reflects the less robust consumer environment in Europe and Australia and more muted demand in Canada, according to Saunders.

“That said, international remains a major opportunity for future growth as TJX continues to expand its footprint,” he added.

The company has raised guidance, expecting overall comparable store sales to be up 4 to 5 per cent for the fiscal year ending February 3.

“We are strongly positioned as a shopping destination for gifts this holiday selling season and are convinced that our values and fresh shipments to our stores and online throughout the season will be a major draw again this year,” said Ernie Herrman, CEO and president of The TJX Companies.

As of October 28, the company operated 4934 stores in nine countries and six e-commerce sites.