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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
TJX
TJX
TJX Revenue by Segment
Revenue by Segment
Marmaxx Revenue
CapyFin.comHomeGoods Revenue
CapyFin.comTJX Canada Revenue
CapyFin.comTJX International Revenue
CapyFin.com 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
- Updates full year FY23 U.S. comp store sales outlook to a decrease of 2% to 3% from an increase of 1% to 2%
- Company is planning U.S. comparable store sales to decrease 3% to 5%
- U.S. comp sales for the second quarter came in lighter than we expected as we believe historically high inflation impacted consumer discretionary spending.
Revenue & Expenses
Visualization of income flow from segment revenue to net income