TJX Companies' Q4 comparable sales increase 6 percent, raises dividend

For its fourth quarter ended February 2, 2019, The TJX Companies, Inc. reported net sales increase of 2 percent to 11.1 billion dollars, over the 14-week period last year, while the company said, consolidated comparable store sales increased 6 percent over a 4 percent increase last year. Net income for the quarter was 842 million dollars and diluted earnings per share were 68 cents compared to 69 cents in the prior year’s 14-week fourth quarter, while adjusted diluted earnings per share were 59 cents versus 59 cents in the prior year.

Commenting on the results, Ernie Herrman, Chief Executive Officer and President of The TJX Companies, said in a statement: “We are extremely pleased with our strong fourth quarter results, with both sales and earnings per share exceeding our expectations. We were also very happy with our full-year performance as consolidated comparable store sales were up 6 percent in 2018, marking our 23rd consecutive year of comp sales growth.”

TJX Companies’ FY19 comparable sales rise by 6 percent

For the 52-week fiscal year, the company added, net sales were 39 billion dollars, a 9 percent increase over the 53-week period last year. Consolidated comparable store sales increased 6 percent over a 2 percent increase last year. Net income for the year was 3.1 billion dollars and diluted earnings per share were 2.43 dollars, a 20 percent increase over 2.02 dollars in the 53-week prior fiscal year, while adjusted diluted earnings per share increased 9 percent to 2.11, dollars versus 1.93 dollars in the prior year.

TJX intends to increase the regular quarterly dividend on its common stock to be declared in April 2019 and payable in June 2019 to 23 cents per share, an 18 percent increase in the current per share dividend and 23rd consecutive year that the company has raised the dividend.

TJX expects to report rise in FY20 comparable sales and profit

For the 52-week fiscal year ending February 1, 2020, the company expects diluted earnings per share to be in the range of 2.55 dollars to 2.60 dollars, a 5 percent to 7 percent increase over the prior year’s 2.43 dollars, which included a 2 cents negative impact from a pension settlement charge. The company expects diluted earnings per share to increase 4 percent to 6 percent over the prior year’s adjusted 2.45 dollars, which excluded the pension settlement charge. This EPS outlook, the company said, is based upon estimated comparable store sales growth of 2 percent to 3 percent on a consolidated basis and at Marmaxx.

For the first quarter of fiscal 2020, the company expects diluted earnings per share to be in the range of 53 cents to 54 cents compared to 56 cents last year. The company expects the combination of incremental freight costs, store wage increases, and foreign currency to negatively impact first quarter EPS growth by approximately 7 percent. This EPS outlook is based upon estimated comparable store sales growth of 2 percent to 3 percent on a consolidated basis and 3 percent to 4 percent at Marmaxx.

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