- Prachi Singh |
Net sales for the first quarter of fiscal 2020 at The TJX Companies, Inc. increased 7 percent to 9.3 billion dollars, while consolidated comparable store sales increased 5 percent over last year’s 3 percent increase. Net income for the first quarter was 700 million dollars and diluted earnings per share were 57 cents versus the prior year’s 56 cents.
“We are very pleased with our continued strong performance in the first quarter, as both our consolidated comparable store sales increase of 5 percent and earnings per share of 57 cents came in well above our expectations. With our above-plan first quarter results, we are raising our full-year earnings per share outlook,” said Ernie Herrman, Chief Executive Officer and President of The TJX Companies in a statement.
TJX raises full year outlook
The company said, consolidated pretax profit margin was 10.1 percent, a 0.9 percentage point decrease versus 11 percent in the prior year. Gross profit margin was 28.5 percent, a 0.4 percentage point decrease versus the prior year. During the first quarter ended May 4, 2019, the company increased its store count by 75 stores to a total of 4,381 stores.
For the second quarter of fiscal 2020, the company expects diluted earnings per share to be in the range of 61 cents to 62 cents, a 5 percent to 7 percent increase over the prior year’s 58 cents. This EPS outlook, TJX said, is based upon estimated comparable store sales growth of 2 percent to 3 percent on a consolidated basis and at Marmaxx.
For the 52-week fiscal year ending February 1, 2020, the company is raising its guidance for diluted earnings per share to be in the range of 2.56 dollars to 2.61 dollars, a 5 percent to 7 percent increase over the prior year’s 2.43 dollars, which included a 0.02 cents negative impact from a pension settlement charge. The company now expects diluted earnings per share to increase 4 percent to 7 percent over the prior year’s adjusted 2.45 dollars, which excluded the pension settlement charge. The company added that this EPS outlook is based upon estimated comparable store sales growth of 2 percent to 3 percent on a consolidated basis and at Marmaxx.