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Jan 29, 2022
TJX Q4 2022 Earnings Report
TJX reported strong Q4 results with increased sales and earnings per share.
Key Takeaways
TJX Companies Inc. reported Q4 FY22 net sales of $13.9 billion, a 27% increase versus Q4 FY21. Diluted earnings per share were $0.78. The company intends to increase the regular quarterly dividend by 13% and repurchase $2.25 to $2.50 billion of stock.
Q4 FY22 net sales increased 27% versus Q4 FY21.
Q4 FY22 diluted earnings per share were $0.78.
U.S. open-only comp store sales increased 13% over Q4 FY20.
Company plans to increase dividend 13% and repurchase $2.25 to $2.50 billion of stock.
TJX
TJX
TJX Revenue by Segment
Forward Guidance
For Q1 2023, the company expects U.S. comparable store sales to increase by 1% to 3%.
Positive Outlook
- Company is planning U.S. comparable store sales to be up 1% to 3% over an outsized 17% U.S. open-only comp store sales increase in the first quarter of Fiscal 2022.
- Company is very pleased with its strong U.S. comparable store sales growth to start the first quarter of Fiscal 2023.
- Company’s first quarter Fiscal 2023 U.S. comparable store sales outlook takes into account the cadence of U.S. open-only comp stores sales growth in the first quarter of Fiscal 2022, which was up low to mid-single digits to start the quarter and then accelerated to a 20%-plus increase in March and April combined.
- Company expects diluted earnings per share to be in the range of $.58 to $.61 versus earnings per share of $.44 in the prior year.
- Company plans to repurchase approximately $2.25 to $2.50 billion of TJX stock during the fiscal year ending January 28, 2023.
Challenges Ahead
- Not providing full year Fiscal 2023 diluted earnings per share guidance given the current uncertainty around how long elevated expense pressures may persist.
- TJX Canada and TJX International’s fourth quarter Fiscal 2022 net sales and open-only comp store sales were negatively impacted by government-mandated shopping restrictions throughout the quarter.
- Company’s consolidated pretax profit margin was 9.0%, a 1.9 percentage point decrease versus the fourth quarter of Fiscal 2020.
- Merchandise margin was down primarily due to 2.8 percentage points of incremental freight expense, which was more than the Company expected.
- Combination of incremental investments to expand distribution capacity and wage increases reduced pretax profit margin by an additional 1.6 percentage points.
Revenue & Expenses
Visualization of income flow from segment revenue to net income