TJX Cos. Q4 comp-sales crush estimates; raises dividend
TJX Cos. reported better-than-expected sales for its fourth quarter as it also celebrated its 23rd consecutive year of comp-sales growth.
The off-price powerhouse reported that sales rose 2% to $11.13 billion for the quarter ended Feb. 3, topping analysts’ estimates of $11.02 billion. Total same-store sales jumped 6%, easily beating Street estimates, driven by increased customer traffic. Same-store sales at Marmaxx, the company’s biggest and most profitable unit which includes T.J. Maxx and Marshalls stores, surged 7%.
Net income totaled $841.5 million, or 68 cents per share, down from $877.3 million, or 69 cents per share, last year. Adjusted earnings per share was 59 cents, below analysts’ estimates of 68 cents.
Commenting on the results, Neil Saunders, managing director of GlobalData Retail, said that, once again, TJX’s ability to surprise and delight shoppers with unexpected bargains paid dividends.
“Moreover, by having a constantly changing assortment it instills urgency in shoppers who know if they don’t make an immediate purchase they may lose out on the product,” he said. For more analysis, click here.
“I am most pleased with the consistency of the performance across our major divisions, which all delivered comp sales growth between 4% and 7%, driven by customer traffic increases, said Ernie Herrman, CEO and president of The TJX Companies. Fourth quarter earnings per share were also above our expectations due to the better-than-expected divisional performance. Our excellent values on great brands and great gift giving assortments resonated with consumers around the globe this holiday season, and once again this quarter, our apparel and home businesses were both strong.”
For the full fiscal 52-week year, net sales were $39.0 billion, a 9% increase over the 53-week period last year. Consolidated comparable store sales increased 6% over a 2% increase last year. Net income was $3.1 billion and diluted earnings per share for the 52-week fiscal year were $2.43, a 20% increase over $2.02 last year.
TJX will increase its dividend to be declared April 2019 and payable June 2019 by 18% to 23 cents per share. It also announced a stock buyback program of about $175 billion to $2.25 billion during the fiscal year ending Feb. 1, 2020.
“In 2019, we plan to continue investing to support our growth while distributing cash to our shareholders,” Hermann said. “Our capital spending plans include investing in new stores, store remodels, and our supply chain and infrastructure. Simultaneously, we’re planning a strong increase to our regular quarterly dividend and to continue our significant buyback program.”
For the full fiscal year ending Feb. 1, 2020, TJX expects EPS in the range of $2.55 to $2.60, in line with Street estimates. For the first quarter, the company forecast EPS in the range of 53 cents to 54 cents, below estimates of 58 cents.
As of February 2, 2019, TJX operated a total of 4,306 stores in nine countries, the United States, Canada, the United Kingdom, Ireland, Germany, Poland, Austria, the Netherlands, and Australia, and three e-commerce sites. These include 1,252 T.J. Maxx, 1,091 Marshalls, 749 HomeGoods, 35 Sierra, and 16 Homesense stores in the United States; 271 Winners, 125 HomeSense, and 88 Marshalls stores in Canada; 567 T.K. Maxx and 68 Homesense stores, in Europe; and 44 T.K. Maxx stores in Australia.
The off-price powerhouse reported that sales rose 2% to $11.13 billion for the quarter ended Feb. 3, topping analysts’ estimates of $11.02 billion. Total same-store sales jumped 6%, easily beating Street estimates, driven by increased customer traffic. Same-store sales at Marmaxx, the company’s biggest and most profitable unit which includes T.J. Maxx and Marshalls stores, surged 7%.
Net income totaled $841.5 million, or 68 cents per share, down from $877.3 million, or 69 cents per share, last year. Adjusted earnings per share was 59 cents, below analysts’ estimates of 68 cents.
Commenting on the results, Neil Saunders, managing director of GlobalData Retail, said that, once again, TJX’s ability to surprise and delight shoppers with unexpected bargains paid dividends.
“Moreover, by having a constantly changing assortment it instills urgency in shoppers who know if they don’t make an immediate purchase they may lose out on the product,” he said. For more analysis, click here.
“I am most pleased with the consistency of the performance across our major divisions, which all delivered comp sales growth between 4% and 7%, driven by customer traffic increases, said Ernie Herrman, CEO and president of The TJX Companies. Fourth quarter earnings per share were also above our expectations due to the better-than-expected divisional performance. Our excellent values on great brands and great gift giving assortments resonated with consumers around the globe this holiday season, and once again this quarter, our apparel and home businesses were both strong.”
For the full fiscal 52-week year, net sales were $39.0 billion, a 9% increase over the 53-week period last year. Consolidated comparable store sales increased 6% over a 2% increase last year. Net income was $3.1 billion and diluted earnings per share for the 52-week fiscal year were $2.43, a 20% increase over $2.02 last year.
TJX will increase its dividend to be declared April 2019 and payable June 2019 by 18% to 23 cents per share. It also announced a stock buyback program of about $175 billion to $2.25 billion during the fiscal year ending Feb. 1, 2020.
“In 2019, we plan to continue investing to support our growth while distributing cash to our shareholders,” Hermann said. “Our capital spending plans include investing in new stores, store remodels, and our supply chain and infrastructure. Simultaneously, we’re planning a strong increase to our regular quarterly dividend and to continue our significant buyback program.”
For the full fiscal year ending Feb. 1, 2020, TJX expects EPS in the range of $2.55 to $2.60, in line with Street estimates. For the first quarter, the company forecast EPS in the range of 53 cents to 54 cents, below estimates of 58 cents.
As of February 2, 2019, TJX operated a total of 4,306 stores in nine countries, the United States, Canada, the United Kingdom, Ireland, Germany, Poland, Austria, the Netherlands, and Australia, and three e-commerce sites. These include 1,252 T.J. Maxx, 1,091 Marshalls, 749 HomeGoods, 35 Sierra, and 16 Homesense stores in the United States; 271 Winners, 125 HomeSense, and 88 Marshalls stores in Canada; 567 T.K. Maxx and 68 Homesense stores, in Europe; and 44 T.K. Maxx stores in Australia.