TJX Companies Posts 2 Percent Sales Drop in Q2, But Raises Outlook for FY23

TJX Companies Posts 2 Percent Sales Drop in Q2, But Raises Outlook for FY23

The TJX Companies, Inc. reported net sales for the second quarter of $11.8 billion, a decrease of 2 percent compared to the second quarter of fiscal 2022.

Company’s U.S. clearinghouse sales decreased 5 percent versus a 21 percent increase in U.S.-only open clearinghouse sales in the fiscal second quarter 2022. Net income was $809 million and diluted earnings per share were 69 cents versus 64 cents per share in the second quarter of fiscal 2022.

Commenting on the results, Ernie Herrman, CEO and President of The TJX Companies, Inc., stated in a statement: “I am very pleased that our second quarter pre-tax profit margin exceeded our plan and earnings per share They were at the top end. of our guide. Looking at the top line, US offset sales for the second quarter were lighter than we expected as we believe historically high inflation weighed on consumer discretionary spending.”

“While we saw more softness in our home categories, we were very pleased that offset sales in our overall apparel business at Marmaxx were slightly positive every month of the quarter. Also, it was good to see the improvement in the profitability of our international divisions. We remain focused on our long-term vision to become an increasingly profitable company with revenues of more than $60 billion,” added Herrman.

TJX reports first half sales increase of 5 percent

For the first half of fiscal 2023, net sales were $23.2 billion, an increase of 5% compared to the first half of fiscal 2022. US comparison store sales .

First half net income was $1.4 billion, while diluted earnings per share was $1.18 vs. $1.08 in the first half of fiscal 2022 and adjusted diluted earnings per share was 1 .36 dollars.

TJX Updates Full Year Earnings Outlook

For the third quarter, the company expects pretax profit margin to be 10.1% to 10.4% and diluted earnings per share to be 77 cents to 81 cents.

For the third quarter, the company plans for U.S. comparable store sales to decline 3% to 5% versus a 16% increase in the third quarter of fiscal 2022.

For the full fiscal year, the company is raising its outlook for pre-tax profit margin and now expects it to be 9.3 percent to 9.5 percent and adjusted pre-tax profit margin to be 9, 7 percent to 9.9 percent, compared with its previous guidance for pretax profit margin of 9.2 percent to 9.4 percent and adjusted pretax profit margin of 9.6 percent to 9.8 percent. hundred.

For the full year, the updated outlook for the company’s diluted earnings per share forecasts a range between $2.87 and $2.95 and adjusted diluted earnings per share of $3.05 to $3.13, compared to its Previous guidance for diluted earnings per share of $2.94 to $3.01. and adjusted diluted earnings per share of $3.13 to $3.20.

U.S. comparable store sales are expected to decline 2% to 3%, compared to its previous guidance of a 1% to 2% increase.

The company’s third-quarter and full-year outlook implies that fourth-quarter pretax profit margin will be 10.1 percent to 10.4 percent and earnings per share 92 cents to 96 cents and U.S. comparable store sales Q4 FY2022.

During the second quarter ended July 30, 2022, the company increased its number of stores by 21 stores to a total of 4,736 stores.

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