Why TJX Is Popping After Q2 Results
TJX Companies released better-than-expected fiscal second-quarter financial results before the markets opened on Tuesday.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
TJX Companies Inc. (NYSE: TJX) released its fiscal second-quarter financial results before the markets opened on Tuesday. The company said that it had $1.17 in earnings per share (EPS) and $9.3 billion in revenue, compared with consensus estimates from Thomson Reuters that called for $1.05 in EPS on revenue of $9.0 billion. In the same period of last year, the retailer said it had EPS of $0.85 and $8.36 billion in revenue.
During the most recent quarter, consolidated comparable sales increased 6%, compared with last year’s 3% increase.
In terms of its segments, the company reported as follows:
- Marmaxx net sales increased 10.7% year over year to $5.85 billion, with comparable sales increasing 7%.
- HomeGoods net sales increased 14.8% to $1.33 billion, with comparable sales increasing 3%.
- TJX Canada net sales increased 12.7% to $938 billion, with comparable sales increasing 6%.
- TJX International net sales increased 12.3% to $1.22 billion, with comparable sales increasing 4%.
[nativounit]
Looking ahead to the fiscal third quarter, the company expects to see EPS in the range of $1.00 to $1.02, with comparable store sales increasing by 2% to 3%. Consensus estimates call for $1.23 in EPS and $9.31 billion in revenue for the quarter.
Ernie Herrman, president and chief executive of TJX, commented:
We are extremely pleased with our second quarter results. Both our consolidated comp store sales growth of 6% and earnings per share of $1.17 significantly exceeded our expectations. Marmaxx, our largest division, delivered a very strong 7% comparable store sales increase. Customer traffic was once again the primary driver of our comp store sales increases at all of our divisions as we continue to reach a very wide customer demographic. Further, this marks the 16th straight quarter of customer traffic increases for TJX and Marmaxx.
Shares of TJX traded up more than 4% early Tuesday at $105.93, with a consensus analyst price target of $101.00 and a new 52-week range of $66.44 to $107.26.
[recirclink id=487268]
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
