TJX Cos. (TJX) Reports In-Line Q4 EPS, Offers FY and Q1 Guidance; Plans Increased Dividend, Buyback

(Updated - February 27, 2019 8:32 AM EST)

TJX Cos. (NYSE: TJX) reported Q4 EPS of $0.68, in-line with the analyst estimate of $0.68. Revenue for the quarter came in at $11.1 billion versus the consensus estimate of $11 billion.

• Q4 above-plan consolidated comp store sales increase of 6%, over last year’s 4% increase
• The Company also announced today its plan to repurchase approximately $1.75 to $2.25 billion of TJX stock during the fiscal year ending February 1, 2020.
• With the Company’s continued strong cash flow, TJX intends to increase the regular quarterly dividend on its common stock to be declared in April 2019 and payable in June 2019 to $.23 per share, subject to the approval of the Company’s Board of Directors. This would represent an 18% increase in the current per share dividend and mark the 23rd consecutive year that the Company has raised the dividend.

GUIDANCE:

TJX Cos. sees Q1 2020 EPS of $0.53-$0.54, versus the consensus of $0.58.

TJX Cos. sees FY2020 EPS of $2.55-$2.60, versus the consensus of $2.60.

• For Fiscal 2020, the Company is comparing all earnings per share estimates to Fiscal 2019 earnings per share results that include the benefit from the 2017 Tax Act. The Company is taking this approach to show year-over-year EPS on a like-for-like basis.
• For the 52-week fiscal year ending February 1, 2020, the Company expects diluted earnings per share to be in the range of $2.55 to $2.60. This would represent a 5% to 7% increase over the prior year’s $2.43, which included a $.02 negative impact from a pension settlement charge. The Company expects diluted earnings per share to increase 4% to 6% over the prior year’s adjusted $2.45, which excluded the pension settlement charge. This guidance reflects an assumption that the combination of incremental freight costs and store wage increases will negatively impact EPS growth by approximately 4%. This EPS outlook is based upon estimated comparable store sales growth of 2% to 3% on a consolidated basis and at Marmaxx.
• For the first quarter of Fiscal 2020, the Company expects diluted earnings per share to be in the range of $.53 to $.54 compared to earnings per share of $.56 last year. The Company expects the combination of incremental freight costs, store wage increases, and foreign currency to negatively impact first quarter EPS growth by approximately 7%. This EPS outlook is based upon estimated comparable store sales growth of 2% to 3% on a consolidated basis and 3% to 4% at Marmaxx.
• The Company’s earnings guidance for the full-year and first quarter of Fiscal 2020 assumes that currency exchange rates will remain unchanged from the levels at the beginning of the first quarter.

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

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