2023-05-17 08:08:13 ET
TJX Companies ( NYSE: TJX ) posted a mixed Q1 report, but raised full-year guidance for EPS
For the first quarter, $0.76 in earnings per share came in $0.05 above expectations while $11.78B in revenue was narrowly short of estimates. Comparable store sales increased 3% as compared to Q1 of fiscal year 2023, just short of the 3.1% Street consensus.
“Our pretax profit margin and earnings per share both significantly exceeded our plan and our 3% comparable store sales increase was at the high end of our plan. Our comp sales growth was driven by an increase in overall customer traffic and a 5% comp sales increase at Marmaxx, our largest division,” CEO Ernie Herrman commented. “HomeGoods’ comp sales were down following extraordinary growth during the pandemic. TJX Canada and TJX International both delivered comp sales growth and customer traffic increases.”
She added that the strong bottom line performance in the quarter encourages the company in raising its full-year guidance for both pretax profit margin and earnings per share. Herrman said that the second quarter is “off to a good start” and she expects off-price buying to pick up amid a tough macro backdrop.
For the full fiscal year ahead, the company expects comparable store sales to be up 2% to 3% against a 3.3% consensus expectation. Adjusted diluted earnings per share are projected to be in the range of $3.49 to $3.58, up from a prior guide of $3.29 to $3.41 and in-line with the $3.54 consensus expectation.
In line with Target before it however, the company issued soft forecasts for the second quarter of fiscal year 2024. The Massachusetts-based retailer expects comparable store sales to be up 2% to 3%, and diluted earnings per share to be in the range of $.72 to $.75. The consensus expectations for comparable sales and EPS stood at 3.16% and $0.81, respectively.
Shares of TJX Companies ( TJX ) ticked about 0.6% lower shortly after the print .
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TJX Companies tops Q1 profit estimates, hikes full-year forecasts