TJX Generates Strong Sales In Q4, Fiscal Year

TJX ended the year on a high note, as the off price retailer generated strong sales and earnings in the fourth quarter and fiscal year.

In its fourth quarter ended January 3, TJX recorded net income of $877.3 million, or $1.37 per diluted share, compared with $677.9 million, or $1.03 per diluted share, in the year-previous quarter. Adjusted to exclude one-time charges and benefits, EPS was $1.19 versus $1.03 in the prior-year quarter.

Although comparable store sales came in stronger than expected, TJX fell short of a Zacks Investment Research analyst average estimate of $1.28 for adjusted earnings per share.

Comparable store sales gained 4% in the quarter versus the year-earlier period, with HomeGoods up 3%, Marmaxx, including the T.J. Maxx and Marshalls banners, up 3%, TJX Canada up 7% and TJX International, including operations in Europe and Australia, up 3%. Net sales in the fourth quarter were $10.96 billion versus $9.47 billion in the year-prior period.

For the full fiscal year, TJX posted net income of $2.61 billion, or $4.04 per diluted share, compared with $2.3 billion, or $3.46 per diluted share, in the year previous. Adjusted diluted EPS was $3.85 versus $3.53 in the prior year. Overall comps advanced 2% in the full fiscal year, with HomeGoods up 4%, Marmaxx up 1%, TJX Canada up 5% and TJX International up 2%. Net sales were $35.86 billion versus $33.18 billion in the fiscal year prior.

Ernie Herrman, TJX president and CEO, said, “In the fourth quarter, our consolidated comp store sales increase of 4% and adjusted earnings per share both meaningfully exceeded our expectations. Once again, customer traffic was up overall and the primary driver of our comp sales increases at each of our four major divisions, as customers responded to our great brands and compelling, eclectic mix of merchandise at excellent values. We are also pleased with our full-year performance as we surpassed $35 billion in annual sales, an important milestone for our company. Consolidated comp store sales were up 2% as we marked the 22nd consecutive year of comp sales growth for TJX. For the full year, adjusted earnings per share were also above our plan.”