Rising sales have prompted cut-price retailer The TJX Companies to raise its sales and earnings outlook for the third quarter and full year.

The US company said October sales were "trending significantly above the company's expectations", prompting it to forecast a comparable store sales increase for the month of 9-11%, both on a consolidated basis and at The Marmaxx Group, which combines the TJ Maxx and Marshalls businesses.

It now expects third quarter diluted earnings per share of US$0.77-0.79, up from $0.58 last year, based on estimated third quarter comps growth of 7% for the whole company, and 8-9% for The Marmaxx Group.

For the full year, TJX now expects diluted EPS of $2.46-2.54, compared with $2.08 the year before, based on estimated comps growth of 4-5% for the whole company and for The Marmaxx Group.

The company's fourth quarter forecast of EPS of $0.60-0.66 remains unchanged.

TJX said its long-term EPS growth target for the three fiscal years to 2013 remained unchanged at 12%, but updated several components of its long-term growth model.

In particular, the company said it now expected square footage growth of 4-5%, thanks to strong financial performance across all businesses and updated projections for European expansion.