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Based in Framingham, MA, The TJX Companies, Inc. (TJX - Free Report) is a leading off-price retailer of apparel and home fashions throughout the U.S. and worldwide. It has more than 4,300 stores across the globe, which are well known for their unique value proposition of brand, fashion, price and quality. TJX’s brand portfolio includes T.J. Maxx, Marshalls, HomeGoods, HomeSense, and Winners.
Q2 Earnings Recap
TJX delivered another strong quarter, with sales and earnings surging well above pre-pandemic levels for the second quarter of fiscal 2022.
Total sales grew 81% year-over-year, hitting $12.1 billion. Earnings rose about 27% to $0.79 per share, easily beating the Street consensus of $0.57 per share.
“Open-only” comparable store sales, which exclude sales that were temporarily closed, spiked 20% compared to the same period two years earlier, and all four of its business segments generated double-digit comps growth. HomeGoods led the gains with a 36% increase.
Excitingly for TJX, the impact of store closures faded even further in Q2; its stores were shut down for an average of 3% of last period compared to 14% in the first quarter.
"Our exciting and eclectic mix of merchandise, great brands and values continued to draw customers into our stores around the world,” said CEO Ernie Herman. Herman also commented that the “performance of our home business across all of our divisions continued to be phenomenal.”
Investors cheered these results, pushing the stock up 6% to a new all-time high after the report was released.
Could TJX Break Out?
Over the past one year, shares of TJX have increased almost 42% compared to the S&P 500’s gain of 31%. Earnings estimates have climbed as well, making the retailer a Zacks Rank #1 (Strong Buy) right now.
For the current fiscal year, eight analysts have revised their bottom-line estimate upwards in the last 60 days, and the Zacks Consensus Estimate has moved up from $2.61 per share to $2.94 per share. Earnings are expected to see triple-digit growth of almost 850% for fiscal 2022, with 2023 continuing the positive earnings growth trend.
Even though management did not provide guidance for the third quarter or full year, they reiterated their bullish long-term outlook that sees TJX reaching $60 billion in annual sales. The company also announced plans to increase share buybacks to a range of $1.25 billion to $1.5 billion for the year, which will help boost its already bountiful cash balance.
If you’re an investor searching for a retail stock to add to your portfolio, make sure to keep TJX on your shortlist.
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Bull of the Day: The TJX Companies (TJX)
Based in Framingham, MA, The TJX Companies, Inc. (TJX - Free Report) is a leading off-price retailer of apparel and home fashions throughout the U.S. and worldwide. It has more than 4,300 stores across the globe, which are well known for their unique value proposition of brand, fashion, price and quality. TJX’s brand portfolio includes T.J. Maxx, Marshalls, HomeGoods, HomeSense, and Winners.
Q2 Earnings Recap
TJX delivered another strong quarter, with sales and earnings surging well above pre-pandemic levels for the second quarter of fiscal 2022.
Total sales grew 81% year-over-year, hitting $12.1 billion. Earnings rose about 27% to $0.79 per share, easily beating the Street consensus of $0.57 per share.
“Open-only” comparable store sales, which exclude sales that were temporarily closed, spiked 20% compared to the same period two years earlier, and all four of its business segments generated double-digit comps growth. HomeGoods led the gains with a 36% increase.
Excitingly for TJX, the impact of store closures faded even further in Q2; its stores were shut down for an average of 3% of last period compared to 14% in the first quarter.
"Our exciting and eclectic mix of merchandise, great brands and values continued to draw customers into our stores around the world,” said CEO Ernie Herman. Herman also commented that the “performance of our home business across all of our divisions continued to be phenomenal.”
Investors cheered these results, pushing the stock up 6% to a new all-time high after the report was released.
Could TJX Break Out?
Over the past one year, shares of TJX have increased almost 42% compared to the S&P 500’s gain of 31%. Earnings estimates have climbed as well, making the retailer a Zacks Rank #1 (Strong Buy) right now.
For the current fiscal year, eight analysts have revised their bottom-line estimate upwards in the last 60 days, and the Zacks Consensus Estimate has moved up from $2.61 per share to $2.94 per share. Earnings are expected to see triple-digit growth of almost 850% for fiscal 2022, with 2023 continuing the positive earnings growth trend.
Even though management did not provide guidance for the third quarter or full year, they reiterated their bullish long-term outlook that sees TJX reaching $60 billion in annual sales. The company also announced plans to increase share buybacks to a range of $1.25 billion to $1.5 billion for the year, which will help boost its already bountiful cash balance.
If you’re an investor searching for a retail stock to add to your portfolio, make sure to keep TJX on your shortlist.