TJX delivers strong Q4 earnings, Shares dance around the 100-psyche level

Jay's InsightWednesday, Feb 28, 2024 9:58 am ET

1min read

TJX Companies, Inc. (TJX) reported strong fourth-quarter earnings beating both earnings per share (EPS) and revenue estimates. TJX surpassed $50 billion in annual sales for the first time, a significant milestone for the company. The company's strong performance can be attributed to its ability to deliver a fresh assortment of gift giving selections to its stores and online, which resonated with consumers. Comparable store sales for the Company increased 5% both for the fourth quarter and full year, well above the company's original plans for 2023.

TJX reported total Q4 comps of +5%, with Marmaxx (US) up +5%, HomeGoods up +7%, TJX Canada up +6%, and TJX International (Europe & Australia) up +3%. This growth exceeded the previous guidance of 3-4% comp sales increase. The company also reported total Q4 revenue of $16.41 billion, which rose 13.0% year/year and beat the consensus of $16.20 billion.

The company, which operates various off-price retail stores, including TJ Maxx and Marshalls, announced earnings per share (EPS) of $1.22, beating the estimate of $1.12.

TJX issued in-line guidance for Q1 (Apr), expecting EPS of $0.84-0.86, which is in line with the consensus of $0.86. The company also guided to Q1 comps of +2-3%. However, TJX issued downside guidance for FY25, expecting EPS of $3.94-4.02, which is below the consensus of $4.12. The company guided to FY25 comps of +2-3%.

TJX intends to increase its quarterly dividend by 13%, and the company is also announcing a plan to repurchase approximately $2.0-2.5 billion of TJX stock during FY25. With $1 billion remaining under its existing stock repurchase program, the company has approved a new stock repurchase program that authorizes the repurchase of up to an additional $2.5 billion. The new authorization represents approximately 2.2% of outstanding shares at current prices.

In conclusion, TJX Companies, Inc. reported strong fourth-quarter earnings results, beating both earnings per share and revenue estimates. The company also reported positive comparable store sales for the quarter and announced plans to increase its quarterly dividend and repurchase a significant amount of stock. However, the downside guidance for FY25 has caused some concern among investors.

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