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TJX Cos. (TJX) Tops Q2 EPS by 4c, Comps Increase 6%, Updates Q3 & FY Guidance

August 18, 2015 8:38 AM EDT

TJX Cos. (NYSE: TJX) reported Q2 EPS of $0.80, $0.04 better than the analyst estimate of $0.76. Revenue for the quarter came in at $7.4 billion versus the consensus estimate of $7.26 billion. Comps increases 6%.

TJX Cos. sees FY2015 EPS of $3.24-$3.28, versus prior guidance of $3.21-$3.27 and the consensus of $3.30.

TJX Cos. sees Q3 2015 EPS of $0.80-$0.82, versus the consensus of $0.89.

Third Quarter and Full Year Fiscal 2016 Outlook

For the third quarter of Fiscal 2016, the Company expects diluted earnings per share to be in the range of $.80 to $.82 compared to $.85 last year. This guidance reflects an assumption that the combination of foreign currency, transactional foreign exchange, the Company’s wage initiative, incremental investments to support growth, and pension costs would have a 13% negative impact on EPS growth. The Company expects the foreign currency impact to third quarter EPS growth to be significantly greater than originally planned due to the continued decline of the Canadian Dollar. This EPS outlook is based upon estimated consolidated comparable store sales growth of 2% to 3%.

The Company is raising its full year earnings per share guidance. For the fiscal year ending January 30, 2016, the Company now expects diluted earnings per share to be in the range of $3.24 to $3.28 versus $3.15 in Fiscal 2015. Excluding a $.01 debt extinguishment charge in Fiscal 2015, this guidance would represent a 3% to 4% increase over the adjusted $3.16 in Fiscal 2015. This EPS raise reflects the benefit from the Company’s strong second quarter and a higher comp store sales growth assumption for the second half of the year, largely offset by expected additional foreign currency headwinds and higher supply chain costs than originally planned. The guidance for EPS growth also reflects a 9% negative impact from the same factors affecting estimated EPS growth in the third quarter, detailed above. This EPS outlook is now based upon a raised estimate of consolidated comparable store sales growth of 3% to 4%.

The Company’s earnings guidance for the third quarter and full year Fiscal 2016 assumes that currency exchange rates will remain unchanged from the levels at the beginning of the third quarter.

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



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