TJX’s Holiday Sales Rose 13%, Topping Earnings Estimates

(CTN News) – The TJX Companies reported a 13% increase in holiday sales on Wednesday as shoppers were looking for bargains.

A survey by LSEG, formerly known as Refinitiv, shows how TJX fared in its fourth fiscal quarter compared to what Wall Street expected:

• Estimated earnings per share of $1.12 vs. $1.22

• The revenue was $16.41 billion compared to the expected $16.21 billion

The company reported $1.4 billion in net income, or $1.22 per share, for the quarter ended February 3, up from $1.04 billion, or 89 cents per share, a year earlier. The company reported earnings per share of $1.12 excluding the additional week in the quarter.

A year earlier, sales were $14.52 billion. This year, they reached $16.41 billion, an increase of about 13%. Prior-year sales included one fewer week than in the current period.

The company’s shares rose slightly in pre-market trading. As of Tuesday’s close, shares had risen over 7% year to date.

TJX, the parent company of T.J. Maxx, Marshall’s and Home Goods, has emerged as the de facto off-price leader in the face of persistent inflation on account of its ability to offer a wide range of premium, branded products.

Sales and profit guidance have been raised numerous times over the past year. While other retailers issued cautious or disappointing guidance amid slowing demand and an uncertain economy, it struck a positive tone ahead of the holiday season.

The holidays are a time when consumers spend record amounts on Black Friday and Cyber Monday, and pull back when promotions aren’t available. Because consumers were able to shop for a wide range of gifts at prices that were lower than the competition,

TJX benefited from its position during the period.

Due to high inventories from many suppliers throughout 2022 and 2023, TJX’s off-price retailer was able to help clear the gut. After a year of growth and demand, Wall Street will be eager to see if TJX’s offering can continue to perform at its current level.

TJX’s guidance seems to reflect that concern. According to LSEG, it expects earnings per share of 84 cents to 86 cents for the current quarter, compared to Wall Street’s expectations of 82 cents to 93 cents. According to the company, earnings per share will be between $3.94 and $4.02 in the full year, compared to $3.88 to $4.40 in estimates.

According to a Jane Hali and Associates research note, there were fewer notable brands in luxury, affordable luxury, and contemporary categories across New York, Florida, Texas and California. While inventory levels in the previous quarter were flat, some stores appeared to have too much inventory and too much clearance, according to the report.

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