Why TJX Is Popping After Q2 Results
TJX Companies released better-than-expected fiscal second-quarter financial results before the markets opened on Tuesday.
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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%.
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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.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
