TJX Companies (TJX) earnings Q3 2024

A HomeGoods shopping cart area in front of a T.J. Maxx store in Pinole, California, US, on Wednesday, May 3, 2023.

David Paul Morris | Bloomberg | Getty Images

TJX Cos. on Wednesday raised its full-year guidance and said it expects a strong holiday season after inflation-weary consumers drove another quarter of sales gains

The off-price giant, which runs T.J. Maxx, Marshall’s and HomeGoods, beat Wall Street’s estimates on the top and bottom lines and topped expectations for comparable sales. 

Here’s how TJX Companies did during its fiscal third quarter ended Oct. 28, compared with what Wall Street was anticipating, based on a survey of analysts by LSEG, formerly known as Refinitiv:

  • Earnings per share: $1.03 vs. 99 cents expected
  • Revenue: $13.27 billion vs. $13.09 billion expected

The company reported net income of $1.19 billion, or $1.03 per share, for the quarter, compared with $1.06 billion, or 91 cents a share, a year earlier. Sales rose to $13.27 billion, up about 9% from $12.17 billion a year earlier. 

For the third time this year, TJX Cos. raised its full-year guidance. It now expects comparable store sales to rise 4% to 5%, compared with previous guidance of up 3% to 4%, which is the range analysts had expected before quarterly results were announced, according to StreetAccount.

TJX now anticipates earnings per share will be in the range of $3.71 to $3.74, compared with a previous range of $3.66 to $3.72. The raised profit guidance is in line with the $3.73 earnings per share that analysts had expected, according to LSEG. 

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During the quarter, comparable store sales climbed 7% at Marmaxx, or the combination of T.J. Maxx and Marshall’s, and 9% at HomeGoods, both better than analysts had expected, according to StreetAccount. Analysts had expected comparable sales to be up 4% at Marmaxx and up 6% at HomeGoods.

Overall, comparable store sales rose 6%.

The company’s shares fell more than 3% on Wednesday despite the earnings beat. The stock is up more than 12% year to date.

TJX has been cruising through its fiscal year as it lapped up the benefits of being an off-price retailer during a tough macroeconomic period. 

The company has been able to entice shoppers with a wide array of premium, branded merchandise because so many of its suppliers had high inventories over the last year and relied on TJX to help clear that glut. Its low-price assortment has also brought in deal-hungry customers who are choosing TJX over companies like Macy’s and Target to save money as persistent inflation weighs on their bank accounts. 

Both Macy’s and Target, as well as other industry peers, have consistently reported soft sales in their apparel and home goods categories. But the opposite has been true at TJX. During the quarter, apparel sales “remained very strong” while home goods sales were “outstanding,” CEO Ernie Herrman said in a news release.  

“Across our geographies and wide customer demographic, our values and exciting, treasure-hunt…

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