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Jul 30, 2022
TJX Q2 2023 Earnings Report
TJX reported Q2 FY23 results with pretax profit margin above the company's plan and EPS at the high-end of the company’s plan.
Key Takeaways
TJX Companies reported Q2 FY23 net sales of $11.8 billion, a decrease of 2% year-over-year. Diluted earnings per share were $0.69, compared to $0.64 in the prior year. The company's pretax profit margin was 9.2%, exceeding their plan. They are increasing their full year FY23 pretax profit margin outlook to 9.3% to 9.5%.
Q2 FY23 pretax profit margin of 9.2% was above the Company’s plan
Q2 FY23 diluted earnings per share of $0.69 were at the high-end of the Company’s plan
Q2 FY23 U.S. comp store sales decreased 5% versus a 21% U.S. open-only comp store sales increase last year
Returned over $1.0 billion to shareholders in Q2 FY23 through share repurchases and dividends
Forward Guidance
For the third quarter of Fiscal 2023, the Company expects pretax profit margin to be 10.1% to 10.4% and diluted earnings per share to be $0.77 to $0.81. For the full year Fiscal 2023, the Company is updating its expectation for diluted earnings per share to $2.87 to $2.95 and adjusted diluted earnings per share to $3.05 to $3.13. For the full year Fiscal 2023, the Company is updating its expectation for U.S. comparable store sales to a decrease of 2% to 3%.
Positive Outlook
- Increasing full year FY23 pretax profit margin outlook to 9.3% to 9.5%
- Increasing full year FY23 adjusted pretax profit margin outlook to 9.7% to 9.9%
- Company expects pretax profit margin to be 10.1% to 10.4%
- Company expects diluted earnings per share to be $0.77 to $0.81
- Company is comfortable with its inventory levels and well positioned to take advantage of the off-price buying opportunities it is seeing in the marketplace.
Challenges Ahead
- Updates full year FY23 earnings per share outlook to $2.87 to $2.95 from $2.94 to $3.01
- Updates full year FY23 adjusted earnings per share outlook to $3.05 to $3.13 from $3.13 to $3.20
Historical Earnings Impact
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Avg. Return Before/After Earnings
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