TJX Companies (TJX) earnings Q4 2024

TJX Cos. on Wednesday said holiday sales jumped 13% as shoppers hunting for deals flocked to the off-price retailer.

Despite the strong quarter and end to its fiscal year, the company issued guidance that came in light of Wall Street’s expectations as it prepares for tougher comps in the year ahead and an uncertain growth trajectory.

Here’s how TJX did in its fiscal fourth quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG, formerly known as Refinitiv:

  • Earnings per share: $1.22 vs. $1.12 expected
  • Revenue: $16.41 billion vs. $16.21 billion expected

For the quarter ended Feb. 3, the company reported net income of $1.4 billion, or $1.22 per share, compared with $1.04 billion, or 89 cents per share, a year earlier. Excluding an additional week in the quarter, TJX reported earnings per share of $1.12.

Sales rose to $16.41 billion, up about 13% from $14.52 billion a year earlier. The prior-year period’s sales included one fewer week.

For the current quarter, it expects earnings per share of 84 cents to 86 cents, light of the higher end of Wall Street’s expectations of 82 cents to 93 cents, according to LSEG. For the full year, it expects earnings per share of $3.94 to $4.02, compared with estimates of $3.88 to $4.40.

Shares of TJX closed slightly higher. The company’s stock is up more than 7% year to date, as of Wednesday’s close.

TJX, which runs T.J. Maxx, Marshall’s, Sierra and HomeGoods, has become the de facto leader in the off-price space for its ability to offer a wide range of premium, branded products and entice higher-income shoppers who are looking for cheaper options in the face of persistent inflation. 

Over the last year, it raised its sales and profit guidance numerous times. Ahead of the holiday season, it struck a positive tone as other retailers issued cautious or disappointing guidance amid slowing demand and an uncertain economy. 

During the holidays, consumers were laser focused on finding the best deals and discounts, spending record amounts on Black Friday and Cyber Monday and pulling back when promotions weren’t available. TJX was well positioned during the period because consumers were able to shop for a wide range of gifts and at prices that tend to be lower than competitors. 

“We feel there is a lot of opportunity in retail,” TJX CEO Ernie Herrman said Wednesday on the company’s conference call. “From our sales momentum, the customers are responding extremely well.”

During the quarter, comparable sales at Marmaxx, which includes T.J. Maxx, Marshall’s and Sierra stores, rose 5%, better than the 4.6% uptick that analysts had expected, according to StreetAccount.

While comparable growth stagnated slightly from the previous quarter, TJX’s numbers are up against tough prior-year figures so its two-year growth rate has actually accelerated, retail analyst Neil Saunders, managing director at GlobalData, said in a note.

In the U.S., sales at T.J. Maxx and Marshalls grew 11.7% on top of a 7% increase…

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