TJX Companies ( NYSE: TJX ) pushed higher in early trading after the retailer reported comparable sales of 4% in Q4 to easily top the consensus expectation of +1.3%.
The Marmaxx business saw comparable sales jump 7% during the quarter, driven by very strong sales of apparel and accessories categories. The HomeGoods business saw a 7% comparable sales decline during quarter.
During Q4, gross profit margin was 26.1% vs. 27.1% a year ago. Selling, general and administrative costs as a percent of sales were 17.0% vs. 18.0% a year ago.
CEO Ernie Hermann said FY24 is off to a strong start and the apparel seller is onfident in improving its profitability this year and reaching the pretax profit margin target of 10.6% by FY25."We are energized for the year ahead and our plans to keep bringing customers around the globe ever-changing selections of great fashions and brands at excellent values. Longer term, I am confident that we are on track to becoming an increasingly profitable $60 billion-plus company," he noted.
Q1 EPS guidance was set by TJX at $0.68 to $0.71 vs. $0.74 consensus. Full-year EPS guidance was set at $3.29 to $3.41 vs. $3.57 consensus.
On the capital allocation front, TJX Companies ( TJX ) boosted the dividend payout by 13% and disclosed a buyback allowance of $2B to $2.5B for FY24.
Shares of TJX rose 1.05% in premarket trading.
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TJX Companies edges higher after comparable sales topper