Strong Q4 Lifts TJX For The Year

TJX accelerated past market expectations for its fourth quarter and fiscal year, with strong comparable sales gains across its off-price retail banners.

For the fourth quarter, TJX posted net income of $984.8 million, or 81 cents per diluted share, versus $841.5 million, or 68 cents per diluted share, in the year-previous quarter. Earnings per diluted share in the quarter exceeded a MarketBeat-published analyst consensus estimate of 77 cents.

Comparable sales gained 6% in the quarter year over year, with Marmaxx, including T.J. Maxx and Marshalls, up 6%; HomeGoods up 5%; TJX Canada up 4%; and TJX International up 10%. Net sales were $12.21 billion versus $11.13 billion in the year-prior quarter.

For the full fiscal year, TJX posted net income of $3.27 billion, or $2.67 per diluted share, versus $3.06 billion, or $2.43 per diluted share, in the previous year.

Comps advanced 4% year over year, with Marmaxx up 5%; HomeGoods up 2%; TJX Canada up 2%; and TJX International up 8%. Net sales were $41.72 billion versus $38.97 billion in the year prior.

Ernie Herrman, TJX president and CEO, said, “We are extremely pleased with our strong fourth quarter results, as both sales and earnings per share significantly exceeded our expectations. Fourth quarter consolidated comparable store sales increased a very strong 6% over a 6% increase last year. We saw strength across the company, with each major division delivering comp sales growth of 4% or higher, all over strong increases last year and all primarily driven by customer traffic. Our exciting brands and gift-giving assortments at great values, supported by our marketing, attracted customers around the globe during the holiday season and beyond. Fourth quarter earnings per share of 81 cents were also well above our guidance. As to the full year, we also delivered strong results. Consolidated comparable store sales were up 4% over a 6% increase last year, marking our 24th consecutive year of comp sales growth. We are also very proud to well surpass $40 billion in annual sales, a tremendous milestone for our company. Full-year earnings per share also exceeded our guidance. Looking ahead to 2020, the year is off to a solid start and our global organization remains focused on bringing great values to shoppers every day. We see plentiful opportunities for TJX in today’s retail landscape and are confident we will continue to capture market share.”