We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The TJX Companies (TJX) Q2 Earnings Top Estimates, View Raised
Read MoreHide Full Article
The TJX Companies, Inc. (TJX - Free Report) posted strong second-quarter fiscal 2025 results, wherein the top and bottom lines increased year over year and came ahead of the Zacks Consensus Estimate. Buoyed by strong second-quarter results, management raised its full-year guidance for both the pretax profit margin and earnings per share.
The company’s second-quarter performance exceeded expectations, with comparable sales being fueled entirely by higher customer transactions across all divisions. A significant milestone was reached in the quarter with the opening of the 5,000th store.
Management stated that it began the third quarter on a strong note, with solid buying opportunities in the marketplace, positioning the company well to ship fresh and attractive merchandise to stores and online throughout the fall and holiday seasons. The company remains positive about its potential to capture additional market share across all geographies, continue international growth, deliver greater value to consumers and enhance profitability.
The TJX Companies, Inc. Price, Consensus and EPS Surprise
TJX Companies’ earnings came in at 96 cents, rising 13% year over year. The metric surpassed the Zacks Consensus Estimate of 92 cents.
Net sales came in at $13,468 million, up 6% year over year (also at constant currency or cc). The Zacks Consensus Estimate was pegged at $13,333 million.
In the Marmaxx (U.S.) division, the company’s net sales came in at $8,445 million, up 7% year over year. Net sales amounted to $2,101 million, up 4% year over year, in the HomeGoods (U.S.) division. TJX Canada’s net sales came in at $1,244 million, up 2% from the figure reported in the year-ago period. TJX International’s (Europe & Australia) net sales were $1,678 million, up 4% year over year.
The company witnessed a 4% jump in overall comparable store sales due to higher customer transactions. Comparable store sales rose 5% at Marmaxx (U.S.) and 1% at TJX International (Europe & Australia) while increasing 2% each at HomeGoods (U.S.) and TJX Canada.
The pretax profit margin was 10.9%, up 0.5 percentage points from the year-ago quarter’s level, driven by reduced freight costs and increased sales, somewhat negated by elevated incentive compensation accruals.
The gross profit margin came in at 30.4%, up 0.2 percentage points year over year. Selling, general and administrative (SG&A) costs, as a percent of sales, were 19.8%, down 0.3 percentage points.
Other Updates
During the quarter, the company added 29 new stores, ending the quarter with 5,001 stores.
TJX Companies ended the quarter with cash and cash equivalents of $5,250 million, long-term debt of $2,864 million and shareholders’ equity of $7,782 million. TJX generated an operating cash flow of $1.6 billion during the second quarter of fiscal 2025.
During the quarter, the company returned $982 million to shareholders. TJX Companies repurchased $559 million worth of stock, retiring 5.1 million shares. The company paid out $423 million in shareholder dividends in the same time frame. In the first half of fiscal 2025, TJX returned $1.9 billion to shareholders. Management still expects to make share repurchases worth $2-$2.5 billion in the fiscal year ending Feb 1, 2025.
Consolidated inventories (on a per-store basis) as of Aug 3, 2024 fell 2% year over year on a reported and constant currency basis. Management is optimistic about its capabilities to offer impressive branded merchandise at its stores and online during the fall and holiday seasons.
Guidance
For fiscal 2025, TJX Companies expects consolidated comparable store sales to increase around 3% now compared with the earlier view of 2-3%. Management now expects the fiscal 2025 pretax profit margin to be 11.2% compared with 11-11.1% expected earlier.
Management now envisions fiscal 2025 earnings per share (EPS) in the $4.09-$4.13 band, up from the earlier guided range of $4.03-$4.09.
For the third quarter of fiscal 2025, TJX Companies expects a consolidated comparable store sales increase of 2-3%. Management expects a quarterly pretax profit margin of 11.8-11.9%. The company envisions third-quarter EPS in the range of $1.06-$1.08.
Shares of this Zacks Rank #3 (Hold) company have risen 16% in the past three months compared with the industry’s growth of 7%.
The Zacks Consensus Estimate for current financial-year sales and earnings suggests growth of 11.3% and 14.3%, respectively, from the year-ago reported numbers. PriceSmart delivered an earnings surprise of 10.2% in the last reported quarter.
The Gap, Inc. , an apparel retail company, currently carries a Zacks Rank #2. The Zacks Consensus Estimate for GPS’ current financial-year sales and earnings indicates growth of around 0.2% and 24.5%, respectively, from the year-ago reported numbers.
Gap has a trailing four-quarter earnings surprise of 202.7%, on average.
Abercrombie & Fitch (ANF - Free Report) , a specialty retailer, currently has a Zacks Rank #2. The Zacks Consensus Estimate for current financial-year sales and earnings suggests growth of 11.5% and 51.1%, respectively, from the year-ago reported numbers.
Abercrombie & Fitch has a trailing four-quarter earnings surprise of 210.3%, on average.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The TJX Companies (TJX) Q2 Earnings Top Estimates, View Raised
The TJX Companies, Inc. (TJX - Free Report) posted strong second-quarter fiscal 2025 results, wherein the top and bottom lines increased year over year and came ahead of the Zacks Consensus Estimate. Buoyed by strong second-quarter results, management raised its full-year guidance for both the pretax profit margin and earnings per share.
The company’s second-quarter performance exceeded expectations, with comparable sales being fueled entirely by higher customer transactions across all divisions. A significant milestone was reached in the quarter with the opening of the 5,000th store.
Management stated that it began the third quarter on a strong note, with solid buying opportunities in the marketplace, positioning the company well to ship fresh and attractive merchandise to stores and online throughout the fall and holiday seasons. The company remains positive about its potential to capture additional market share across all geographies, continue international growth, deliver greater value to consumers and enhance profitability.
The TJX Companies, Inc. Price, Consensus and EPS Surprise
The TJX Companies, Inc. price-consensus-eps-surprise-chart | The TJX Companies, Inc. Quote
Quarter in Detail
TJX Companies’ earnings came in at 96 cents, rising 13% year over year. The metric surpassed the Zacks Consensus Estimate of 92 cents.
Net sales came in at $13,468 million, up 6% year over year (also at constant currency or cc). The Zacks Consensus Estimate was pegged at $13,333 million.
In the Marmaxx (U.S.) division, the company’s net sales came in at $8,445 million, up 7% year over year. Net sales amounted to $2,101 million, up 4% year over year, in the HomeGoods (U.S.) division. TJX Canada’s net sales came in at $1,244 million, up 2% from the figure reported in the year-ago period. TJX International’s (Europe & Australia) net sales were $1,678 million, up 4% year over year.
The company witnessed a 4% jump in overall comparable store sales due to higher customer transactions. Comparable store sales rose 5% at Marmaxx (U.S.) and 1% at TJX International (Europe & Australia) while increasing 2% each at HomeGoods (U.S.) and TJX Canada.
The pretax profit margin was 10.9%, up 0.5 percentage points from the year-ago quarter’s level, driven by reduced freight costs and increased sales, somewhat negated by elevated incentive compensation accruals.
The gross profit margin came in at 30.4%, up 0.2 percentage points year over year. Selling, general and administrative (SG&A) costs, as a percent of sales, were 19.8%, down 0.3 percentage points.
Other Updates
During the quarter, the company added 29 new stores, ending the quarter with 5,001 stores.
TJX Companies ended the quarter with cash and cash equivalents of $5,250 million, long-term debt of $2,864 million and shareholders’ equity of $7,782 million. TJX generated an operating cash flow of $1.6 billion during the second quarter of fiscal 2025.
During the quarter, the company returned $982 million to shareholders. TJX Companies repurchased $559 million worth of stock, retiring 5.1 million shares. The company paid out $423 million in shareholder dividends in the same time frame. In the first half of fiscal 2025, TJX returned $1.9 billion to shareholders. Management still expects to make share repurchases worth $2-$2.5 billion in the fiscal year ending Feb 1, 2025.
Consolidated inventories (on a per-store basis) as of Aug 3, 2024 fell 2% year over year on a reported and constant currency basis. Management is optimistic about its capabilities to offer impressive branded merchandise at its stores and online during the fall and holiday seasons.
Guidance
For fiscal 2025, TJX Companies expects consolidated comparable store sales to increase around 3% now compared with the earlier view of 2-3%. Management now expects the fiscal 2025 pretax profit margin to be 11.2% compared with 11-11.1% expected earlier.
Management now envisions fiscal 2025 earnings per share (EPS) in the $4.09-$4.13 band, up from the earlier guided range of $4.03-$4.09.
For the third quarter of fiscal 2025, TJX Companies expects a consolidated comparable store sales increase of 2-3%. Management expects a quarterly pretax profit margin of 11.8-11.9%. The company envisions third-quarter EPS in the range of $1.06-$1.08.
Shares of this Zacks Rank #3 (Hold) company have risen 16% in the past three months compared with the industry’s growth of 7%.
3 Solid Retail Picks
PriceSmart, Inc. (PSMT - Free Report) , which owns and operates U.S.-style membership shopping warehouse clubs, currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for current financial-year sales and earnings suggests growth of 11.3% and 14.3%, respectively, from the year-ago reported numbers. PriceSmart delivered an earnings surprise of 10.2% in the last reported quarter.
The Gap, Inc. , an apparel retail company, currently carries a Zacks Rank #2. The Zacks Consensus Estimate for GPS’ current financial-year sales and earnings indicates growth of around 0.2% and 24.5%, respectively, from the year-ago reported numbers.
Gap has a trailing four-quarter earnings surprise of 202.7%, on average.
Abercrombie & Fitch (ANF - Free Report) , a specialty retailer, currently has a Zacks Rank #2. The Zacks Consensus Estimate for current financial-year sales and earnings suggests growth of 11.5% and 51.1%, respectively, from the year-ago reported numbers.
Abercrombie & Fitch has a trailing four-quarter earnings surprise of 210.3%, on average.