TJX Cos. (TJX) Misses Q4 EPS by 35c, Revenues Miss

TJX Cos. (NYSE: TJX) reported Q4 EPS of $0.27, $0.35 worse than the analyst estimate of $0.62. Revenue for the quarter came in at $10.9 billion versus the consensus estimate of $11.47 billion.

• Reported Q4 FY21 net sales of $10.9 billion, which reflects the negative impact of temporary store closures for approximately 13% of the quarter
• Q4 FY21 overall open-only comp store sales decreased 3%, which was well above the Company’s plans
• Q4 FY21 diluted earnings per share were $.27, which includes a debt extinguishment charge of $.18 per share and a higher tax rate in the fourth quarter that negatively impacted EPS by an additional $.05
• The Company estimates that its temporary store closures in Europe and Canada negatively impacted fourth quarter sales by approximately $950 million to $1.05 billion and EPS by approximately $.18 to $.21 (see below)
• Reported FY21 net sales of $32.1 billion, which reflects the negative impact of temporary store closures for approximately 24% of the year
• FY21 overall open-only comp store sales decreased 4%, which was above the Company’s plans
• FY21 diluted earnings per share were $.07, which includes a debt extinguishment charge of $.19 per share
• Generated FY21 operating cash flow of $4.6 billion
• Declared the previously announced Q4 FY21 dividend at an increased rate of $.26 per share; Announces plans to declare a quarterly dividend at the current rate in the first quarter of Fiscal 2022, subject to Board approval

CEO and President Comments

Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc., stated, “As we report our 2020 results, I want to thank our global Associates for their extraordinary efforts during an unprecedented year. They pulled together and worked as ‘One TJX,’ and I am especially proud of their commitment to the health and safety protocols for our Associates and customers. I want to give special recognition to our store, distribution, and fulfillment center Associates who have been physically coming in to work to keep our business open. I could not be prouder of our teams around the world who achieved monumental tasks in the face of a global pandemic in 2020.”

Herrman continued, “In terms of the business results, I am very pleased that our fourth quarter open-only comp store sales were down only 3%, exceeding our plans. Our brands, values, and exciting gift assortments resonated with customers, and we achieved these results despite numerous COVID-related headwinds. Overall open-only comp store sales improved each month of the quarter and were positive in January. Further, open-only comp store sales exceeded our plans across each of our divisions, including at HomeGoods which once again delivered a double-digit increase. We also saw continued strength in our home and beauty departments. As we start the new fiscal year, while uncertainty around COVID-19 remains, we feel very good about the strength of the business and our market share opportunities beyond the health crisis. We are convinced that our entertaining, treasure hunt shopping experience, our differentiated, branded merchandise selections, and value proposition will continue to resonate with consumers. We see many opportunities to leverage our flexible business model, gain more customers, and continue driving the successful growth of TJX for many years ahead.”

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

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