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Jul 29, 2023
TJX Q2 2024 Earnings Report
TJX's Q2 2024 performance exceeded expectations, with comp store sales, pretax profit margin, and EPS all surpassing plans.
Key Takeaways
TJX Companies Inc. reported an 8% increase in net sales to $12.8 billion for Q2 FY24. Overall comp store sales grew by 6%, driven by customer traffic. Diluted earnings per share increased by 23% to $0.85, and the company returned $932 million to shareholders through share repurchases and dividends. The company also raised its full-year outlook for comparable store sales, pretax profit margin and earnings per share.
Overall comp store sales increased 6%, driven entirely by customer traffic.
Marmaxx comp store sales increased 8%, with strong performance in both apparel and home businesses.
Pretax profit margin was 10.4%, up 1.2 percentage points versus last year.
Diluted earnings per share were $0.85, up 23% versus last year.
Forward Guidance
The company provided guidance for Q3 and full year Fiscal 2024. For Q3, the company expects comp store sales to increase 3-4% and EPS to be in the range of $0.95-$0.98. For the full year, the company expects comp store sales to increase 3-4% and EPS to be in the range of $3.66-$3.72.
Positive Outlook
- Planning overall comparable store sales to be up 3% to 4% for Q3 Fiscal 2024.
- Pretax profit margin to be in the range of 11.3% to 11.5% for Q3 Fiscal 2024.
- Diluted earnings per share to be in the range of $.95 to $.98 for Q3 Fiscal 2024.
- Planning overall comparable store sales to be up 3% to 4% for the fiscal year ending February 3, 2024.
- Increasing expectations for pretax profit margin to a range of 10.7% to 10.8% for the fiscal year ending February 3, 2024.
Challenges Ahead
- The potential impact of a pension payout offer is not included in the Company’s Fiscal 2024 outlook.
- The Company expects to exclude the impact of this potential charge from the Company’s third quarter and full year Fiscal 2024 adjusted pretax profit margin and adjusted earnings per share results.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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