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05/18/2022

TJX profit tops Street, but revenue disappoints

Marianne Wilson
Editor-in-Chief
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TXJ’s first-quarter sales rose 13% to $11.40 billion.

The TJX Cos. reported first-quarter profit that topped analysts' expectations but its revenue came up short and the company lowered its full-year sales outlook.

The off-price retailer, whose brands include TJ Maxx, Marshalls and HomeGoods, reported net income of $587.5 million, or $0.49 per share, for the quarter ended April 30, up from $533.9 million, or $0.26 per share, in the year-ago period. Adjusted earnings of $0.68 topped analysts’ estimates for $0.60.

In March, TJX said that it would divest its 25% equity ownership in Familia, which operates more than 400 off-price stores in Russia, “in support of the people of Ukraine.”

Sales rose 13% to $11.406 billion from $10.087 billion last year, missing estimates for $11.586 billion. U.S. same-store sales were flat. By division, Marmaxx (includes TJ Maxx and Marshalls) comp-sales rose 3%, driven by an increase in traffic, the company said. HomeGoods comp sales fell 7%.

“We believe our value proposition is as appealing as ever for consumers in today’s retail environment, and we are excited about our initiatives to drive customer traffic and sales,” stated Ernie Herrman, CEO and president, TJX Cos. “We remain focused on our long-term vision to become an increasingly profitable, $60-billion-plus company.”

For the second quarter, TJX expects a U.S. same-store sales decline of 1% to 3% and earnings per share of $0.65 to $0.69. The FactSet consensus is for EPS of 75 cents.

For the full fiscal year, the company is anticipating U.S. same-store sales growth of 1% to 2%, compared with its previous outlook of a 3% to 4% gain, and earnings per share in the range of $3.13 to $3.20.

As of April 30, 2022, TJX operated a total of 4,715 stores in nine countries. These include 1,285 T.J. Maxx, 1,155 Marshalls, 859 HomeGoods, 60 Sierra, and 39 Homesense stores in the United States; 293 Winners, 148 HomeSense, and 106 Marshalls stores in Canada; 623 T.K. Maxx and 77 Homesense stores in Europe; and 70 T.K. Maxx stores in Australia.