UPDATE: TJX Cos. (TJX) Tops Q4 EPS by 3c, Hikes Dividend; Plans Wage Increase

(Updated - February 25, 2015 8:41 AM EST)

TJX Cos. (NYSE: TJX) reported Q4 EPS of $0.93, $0.03 better than the analyst estimate of $0.90. Revenue for the quarter came in at $8.3 billion versus the consensus estimate of $8.26 billion. Comps increased 4%.

Increase in Shareholder Distributions

The Company intends to increase the regular quarterly dividend on its common stock to be declared in March 2015 and payable in June 2015 to $.21 per share, subject to the approval of the Company’s Board of Directors. This increase would represent a 20% increase in the current per share dividend and mark the 19th consecutive year that the Company has raised the dividend. Over this period of time, the Company’s dividend has grown at a compound annual rate of 23%.

The Company also announced today its plan to repurchase approximately $1.8 to $1.9 billion of TJX stock during the fiscal year ending January 30, 2016, which would be $100 to $200 million more than last year. With $1.3 billion remaining at Fiscal 2015 year end under the Company’s existing stock repurchase program, the Company’s Board of Directors approved a new stock repurchase program that authorizes the repurchase of up to an additional $2.0 billion of TJX common stock from time to time. The new authorization represents approximately 4% of the Company’s outstanding shares at current prices. The new stock repurchase program marks the 16th program approved by the Board since 1997. Over this period, the Company has spent approximately $14.4 billion on the repurchase of TJX stock. During the fourth quarter, the Company spent a total of $407 million to repurchase TJX stock, retiring 6.2 million shares. In Fiscal 2015, the Company spent a total of $1.7 billion to repurchase TJX stock, retiring 27.7 million shares. Under the Company’s repurchase plans, share repurchases may be made from time to time in market or private transactions and may include derivative transactions. The repurchase program announced today has no time limit and may be suspended or discontinued at any time.

Increased Investments in TJX Associates

The Company announced today an important initiative on wages for its U.S. store Associates, including its T.J. Maxx, Marshalls, HomeGoods and Sierra Trading Post Associates. This initiative will benefit current and future Associates, as the Company’s full- and part-time hourly U.S. store Associates will earn at least $9.00 per hour beginning in June. Sometime during 2016, all hourly U.S. store Associates who have been employed for six months or more will earn at least $10 per hour.

TJX Cos. sees FY2015 EPS of $0.64 - $0.66, versus the consensus of $0.72.

FY EPS is seen at $3.17 - $3.25 vs the consensus of $3.50. It sees FY comps of 1%-2%.

For earnings history and earnings-related data on TJX Cos. (TJX) click here.

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