Why TJX Is Popping After Q2 Results

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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%.

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.