TJX Companies reports 4 percent rise in FY17 earnings
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Management
Net sales of the TJX Companies for the fourth quarter of fiscal 2017 increased 6 percent to 9.5 billion dollars, over an 8 percent increase last year. Net income was 678 million dollars and diluted earnings per share were 1.03 dollars, a 4 percent increase over the prior year's 0.99 dollar. For the 52-week fiscal year, net sales were 33.2 billion dollars, a 7 percent increase over last year's 6 percent rise. Net income for the fiscal year was 2.3 billion dollars and diluted earnings per share were 3.46 dollars, a 4 percent increase over last year's 3.33 dollars.
Commenting on the company’s performance, Ernie Herrman, Chief Executive Officer and President of The TJX Companies said in a media release, “We were proud to mark our 40-year milestone as a company and surpass 33 billion dollars in sales. Our consolidated comp sales increased a strong 5 percent, above our plan and over 5 percent growth last year, and earnings per share growth exceeded our expectations. We also delivered a 7 percent increase in net sales, over a 6 percent increase last year.”
Review of the fourth quarter and fiscal year results
Consolidated comparable store sales for the fourth quarter increased 3 percent, over last year's 6 percent increase. Consolidated comparable store sales increased 5 percent for the year, over last year's 5 percent increase. Excluding a third quarter debt extinguishment charge and pension settlement charge, which combined reduced earnings per share by 0.07 dollar per share, adjusted earnings per share were 3.53 dollars, a 6 percent increase over the prior year's 3.33 dollars.
The Company intends to increase the regular quarterly dividend on its common stock to be declared in April 2017 and payable in June 2017 to 0.3125 dollar per share, subject to the approval of the company's Board of Directors. This increase would represent a 20 percent increase in the current per share dividend and mark the 21st consecutive year that the company has raised the dividend. Over this period of time, the company's dividend has grown at a compound annual rate of 23 percent.
Anticipates 10-12 percent rise in FY18 earnings
For the 53-week fiscal year ending February 3, 2018, the company expects diluted earnings per share to be in the range of 3.80 dollars to 3.89 dollars, which represents a 10 percent to 12 percent increase over the prior year's 3.46 dollars. The company's full-year guidance includes an expected benefit of approximately 0.11 dollar per share from the 53rd week in the company's fiscal 2018 calendar. Excluding this benefit, the company expects adjusted diluted earnings per share to be in the range of 3.69 dollars to 3.78 dollars. This would represent a 5 percent to 7 percent increase over the prior year's adjusted 3.53 dollars.
For the first quarter, the company expects diluted earnings per share to be in the range of 0.76 dollar to 0.78 dollar, compared to 0.76 dollar last year. This EPS outlook is based upon estimated consolidated comparable store sales growth of 0 percent to 1 percent versus last year's 7 percent increase.
In short
Picture:TJX Companies