TJX Q1 earnings up, raises full year forecast

The TJX Companies, Inc. announced net sales for the first quarter were 11.8 billion dollars, an increase of 3 percent versus the first quarter of fiscal 2023. The company’s overall comp store sales increased 3 percent.

Net income for the quarter was 891 million dollars and diluted earnings per share were 76 cents, up 55 percent. Diluted earnings per share were up 12 percent versus last year’s first quarter adjusted diluted earnings per share of 68 cents.

Commenting on the first quarter results, Ernie Herrman, chief executive officer and president of The TJX Companies, Inc., stated: “Our pretax profit margin and earnings per share both significantly exceeded our plan and our 3 percent 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 percent comp sales increase at Marmaxx, our largest division.”

TJX expects 2 to 3 percent Q2 comp sales growth

For the first quarter, the company’s pretax profit margin was 10.3 percent compared to 7.5 percent last year, and up 0.9 percentage points versus adjusted pretax profit margin of 9.4 percent.

For the second quarter, the company expects overall comparable store sales to be up 2 percent to 3 percent, pretax profit margin to be in the range of 9.3 percent to 9.5 percent and diluted earnings per share to be in the range of 72 cents to 75 cents.

TJX raises earnings outlook

For the fiscal year ending February 3, 2024, the company continues to expect overall comparable store sales to be up 2 percent to 3 percent, pretax profit margin to range between 10.3 percent to 10.5 percent and diluted earnings per share to be in the range of 3.49 dollars to 3.58 dollars.

Adjusted pretax profit margin is expected to be in the range of 10.2 percent to 10.4 percent and adjusted diluted earnings per share to be in the range of 3.39 dollars to 3.48 dollars.

“With our above-plan profit performance we are raising our full-year guidance for both pretax profit margin and earnings per share. We are pleased that the second quarter is off to a good start and we are seeing phenomenal off-price buying opportunities in the marketplace,” Herrman added.

During the first quarter, the company increased its store count by 30 stores to a total of 4,865 stores.