- Prachi Singh |
The TJX Companies, Inc. has announced that net sales for the second quarter increased 5 percent to 9.8 billion dollars, while consolidated comparable store sales increased 2 percent, over last year’s 6 percent increase. First half net sales increased 6 percent to 19.1 billion dollars and comparable store sales increased 4 percent. Net income for the quarter was 759 million dollars and diluted earnings per share were 62 cents, up 7 percent versus the prior year’s 58 cents. Net income for the first half was 1.5 billion dollars and diluted earnings per share were 1.19 dollars, versus the prior year’s 1.15 dollars.
Commenting on the trading update, Ernie Herrman, CEO and President of The TJX Companies, said in a statement: “We were very pleased that customer traffic drove our consolidated comp and was up at each of our four major divisions. This quarter marks the 20th straight quarter of customer traffic increases at TJX and Marmaxx. We are excited about our many initiatives underway to keep driving sales and customer traffic throughout the fall and holiday selling season.”
TJX maintains full year earnings outlook
The company added that movement in foreign currency exchange rates had a one percentage point negative impact on consolidated net sales growth in the second quarter and first half versus the prior year. For the second quarter, the company’s consolidated pretax profit margin was 10.4 percent, a 0.2 percentage point decrease versus 10.6 percent in the prior year. Gross profit margin was 28.2 percent, a 0.7 percentage point decrease versus the prior year.
For the third quarter, the company expects diluted earnings per share to be in the range of 63 cents to 65 cents versus the prior year’s EPS of 61 cents, and the prior year’s adjusted EPS of 63 cents. This EPS outlook is based upon estimated comparable store sales growth of 1 percent to 2 percent versus a 7 percent increase in the prior year. The company is also estimating comparable store sales growth of 1 percent to 2 percent at Marmaxx.
For the 52-week fiscal year ending February 1, 2020, the company continues to expect diluted earnings per share to be in the range of 2.56 dollars to 2.61 dollars, representing a 5 percent to 7 percent increase over the prior year’s 2.43 dollars. The company expects diluted earnings per share to increase 4 percent to 7 percent over the prior year’s adjusted 2.45 dollars. This EPS outlook is based upon estimated comparable store sales growth of 2 percent to 3 percent on a consolidated basis and at Marmaxx.
During the second quarter, the company increased its store count by 31 stores to a total of 4,412 stores.
Picture:Facebook/T. J. Maxx