TJX posts Q2 sales and profit growth, raises outlook
The TJX Companies, Inc. net sales for the second quarter were 12.8 billion dollars, an increase of 8 percent versus the same quarter of fiscal 2023. The company’s comp store sales increased 6 percent.
For the first six months, the company’s net sales were 24.5 billion dollars, an increase of 6 percent, while comp store sales increased 4 percent.
Commenting on the trading update, Ernie Herrman, chief executive officer and president of The TJX Companies, Inc., stated: “I am extremely pleased with our second quarter performance. Our comparable store sales increase of 6 percent, pretax profit margin, and earnings per share all significantly exceeded our plans. It was terrific to see Marmaxx, our largest division, drive an 8 percent comp sales increase.”
TJX posts increase in net income
Net income for the quarter was 1 billion dollars and diluted earnings per share were 85 cents, up 23 percent.
Net income for the first half period was 1.9 billion dollars and diluted earnings per share were 1.62 dollars versus the first half of fiscal 2023, an increase of 37 percent, and were up 19 percent versus last year’s first half adjusted earnings per share of 1.36 dollars.
TJX raises full year outlook
“Our overall apparel and accessories sales were very strong. Overall home sales significantly improved and returned to positive comp sales growth, with HomeGoods posting a 4 percent comp sales increase. TJX Canada and TJX international also both delivered comp sales growth and customer traffic increases. With our above-plan results, we are raising our full-year outlook for comparable store sales, pretax profit margin, and earnings per share,” added Herman.
For the third quarter, the company is planning overall comparable store sales to be up 3 percent to 4 percent, pretax profit margin to be in the range of 11.3 percent to 11.5 percent and diluted earnings per share to be in the range of 95 cents to 98 cents.
For the fiscal year ending February 3, 2024, the company is now planning overall comparable store sales to be up 3 percent to 4 percent. Pretax profit margin is now expected to be in the range of 10.7 percent to 10.8 percent and diluted earnings per share to be in the range of 3.66 dollars to 3.72 dollars, while adjusted pretax profit margin is expected to be in the range of 10.6 percent to 10.7 percent and adjusted diluted earnings per share to be in the range of 3.56 dollars to 3.62 dollars.
Based on the company’s third quarter and full-year outlook, the company is planning fourth quarter comparable store sales to be up 3 percent to 4 percent, pretax profit margin to be in the range of 10.7 percent to 10.9 percent and earnings per share to be in the range of 1.10 dollars to 1.13 dollars. Adjusted pretax profit margin expected to be in the range of 10.3 percent to 10.5 percent and adjusted diluted earnings per share to be in the range of 1 dollars to 1.03 dollars.
During the second quarter, the company increased its store count by 19 stores to a total of 4,884 stores.
