TJX Cos. (TJX) Tops Q1 EPS by 8c, Revenue Misses, Offers Guidance

May 18, 2022 7:31 AM EDT

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(Updated - May 18, 2022 7:34 AM EDT)

TJX Cos. (NYSE: TJX) reported Q1 EPS of $0.68, $0.08 better than the analyst estimate of $0.60. Revenue for the quarter came in at $11.4 billion versus the consensus estimate of $11.6 billion.

CEO and President Comments

  • Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc., stated, “I am very pleased with our first quarter performance. I want to recognize the continued commitment and dedication of our talented Associates who bring outstanding values on branded, quality merchandise to our customers every day. I am particularly pleased that our first quarter pretax profit margin and earnings per share, each on an adjusted basis, exceeded our plans even though our sales were slightly below our planned range. This underscores the power of our flexible, off-price business model when we execute well. For the full year, we see opportunity to further improve our profitability. I also want to highlight our largest division, Marmaxx, delivered a comp store sales increase of 3% over 12% open-only comp growth last year, which was driven by an increase in customer traffic. We believe our value proposition is as appealing as ever for consumers in today’s retail environment, and we are excited about our initiatives to drive customer traffic and sales. We remain focused on our long-term vision to become an increasingly profitable, $60-billion-plus company.”

Second Quarter, Full Year, and Second Half Fiscal 2023 Outlook:

For the start of the second quarter, the Company is pleased with its sales trends. For the second quarter of Fiscal 2023, the Company is planning U.S. comparable store sales to be down 1% to down 3% versus a 21% U.S. open-only comp store sales increase in the second quarter of Fiscal 2022. This comp sales guidance implies stronger 3-year stacked comp sales growth in the second quarter of Fiscal 2023 than in the first quarter of Fiscal 2023. (3-year stacked comp sales is the sum of the comparison of Fiscal 2023 U.S. comp store sales to Fiscal 2022 open-only comp store sales plus the comparison of Fiscal 2022 open-only comp store sales to Fiscal 2020 comp store sales.) For the second quarter of Fiscal 2023, the Company expects diluted earnings per share to be in the range of $.65 to $.69.

For the full year Fiscal 2023, the Company now expects U.S. comparable store sales to be up 1% to 2% over a 17% U.S. open-only comp store sales increase in Fiscal 2022, which reflects the Company’s actual first quarter U.S. comp sales and second quarter U.S. comp sales plan. For the full year Fiscal 2023, the Company expects pretax margin in the range of 9.2% to 9.4% and is increasing its outlook for adjusted pretax margin to a range of 9.6% to 9.8%. The Company expects diluted earnings per share in the range of $2.94 to $3.01 and adjusted diluted earnings per share in the range of $3.13 to $3.20. Adjusted pretax margin and adjusted earnings per share plans exclude the negative impact from the charge related to a write-down of the Company’s minority investment in Familia.

The Company’s full year Fiscal 2023 outlook implies a 4% to 5% U.S. comparable store sales increase in the second half of Fiscal 2023, over a 14% U.S. open-only comp store sales increase in the second half of Fiscal 2022. The Company’s full year Fiscal 2023 outlook also implies second half Fiscal 2023 pretax margin in the double-digit range.

(Consensus sees FY EPS of $3.15 and Q2 EPS of $0.75)

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



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