The TJX Companies IncTJX
▲ PositiveCapitalDemandrelevance
Q2 beat and raised full-year profit outlook, with EPS up 11% and buybacks/dividends returning $1.3B.
Impact on stocks 1
Consumer Discretionary
The TJX Companies IncThe TJX Companies reported second-quarter results that beat its own plan, with consolidated comparable sales up 4% and adjusted earnings per share rising 11% to $1.22, prompting management to raise its full-year profit outlook. However, its largest division, Marmaxx, which includes TJ Maxx and Marshalls, grew comparable sales just 1%, entirely from a bigger average basket, as transactions slipped. HomeGoods led the portfolio with a 7% comparable sales jump and a 240 basis point margin expansion to 12.4%, while TJX Canada and TJX International posted 6% and 7% growth, respectively. The company lifted its long-term store target by 500 locations to 7,500 and plans to accelerate openings to a 4% pace next year, while returning $1.3 billion to shareholders through buybacks and dividends. CEO Ernie Herrman acknowledged execution issues at Marmaxx, and management expects pressure into the third quarter, with adjusted EPS guidance of $1.30 to $1.32, reflecting only 2% to 3% growth, as higher fuel and freight costs weigh on margins.
The TJX Companies IncQ2 beat and raised full-year profit outlook, with EPS up 11% and buybacks/dividends returning $1.3B.