TJX Strengthens Comp Performance In Q4

TJX continued to strengthen its comp performance across all of its off-price banners in a strong fourth quarter.

For the 13 week fourth quarter ended February 2, TJX posted net income of $841.5 million, or 68 cents per diluted share, versus $877.3 million, or 69 cents per diluted share, in the 14-week period a year before, with adjusted diluted earnings per share coming in at 59 cents for both quarters.

Adjusted earnings per share fell short of a Zacks Investment Research analyst consensus estimate of 68 cents.

Consolidated comparable store sales increased 6% in the quarter year over year, with Marmaxx comps, including those for T.J. Maxx and Marshalls, up 7%, HomeGoods comps up 5%, TJX Canada comps up 4% and TJX International comps up 5%. Net sales advanced 2% to $11.13 billion as compared to the period a year previous.

For the 52-week fiscal year, net income was $3.06 billion, or $2.43 per diluted share, versus $2.61 billion, or $2.02 per diluted share, in the 53-week period a year earlier, with adjusted earnings per share coming in at $2.11 versus $1.93 in the year prior.

In the full fiscal year, consolidated comparable stores sales increased 6% year over year, with Marmaxx comps up 7%, HomeGoods comps up 4%, TJX Canada comps up 4% and TJX International comps up 3%. Net sales gained 9% to $38.97 billion as compared to the year before.

Ernie Herrman, TJX president and CEO, said, “We are extremely pleased with our strong fourth quarter results, with both sales and earnings per share exceeding our expectations. Fourth quarter consolidated comparable store sales increased a very strong 6%, significantly above our plan and over a 4% increase last year. I am most pleased with the consistency of the performance across our major divisions, which all delivered comp sales growth between 4% and 7%, driven by customer traffic increases. Fourth quarter earnings per share were also above our expectations due to the better-than-expected divisional performance. Our excellent values on great brands and great gift giving assortments resonated with consumers around the globe this holiday season, and once again this quarter, our apparel and home businesses were both strong.”