The TJX Companies, Inc. Reports Above Plan Q2 FY24 Comp Store Sales Growth of 6%, Pretax Profit Margin of 10.4%, and EPS Growth of 23%; Marmaxx Comp Store Sales up 8%; Increases FY24 Comp Store Sales, Pretax Profit Margin, and EPS Guidance
- Q2 FY24 overall comp store sales increased by 6%, driven by customer traffic.
- Pretax profit margin for Q2 FY24 was 10.4%, up 1.2 percentage points compared to last year.
- Diluted earnings per share for Q2 FY24 were $0.85, up 23% from last year.
- The company returned $932 million to shareholders through share repurchases and dividends.
- The outlook for FY24 comp store sales, pretax profit margin, and earnings per share has been increased.
- None.
-
Q2 FY24 overall comp store sales increased
6% , well above the Company’s plan, and were entirely driven by customer traffic -
Q2 FY24 comp store sales at Marmaxx increased
8% and were entirely driven by customer traffic; saw very strong sales in both its apparel and home businesses -
Q2 FY24 pretax profit margin was
10.4% , up 1.2 percentage points versus last year and well above the Company’s plan -
Q2 FY24 diluted earnings per share were
$.85 , up23% versus last year and well above the Company’s plan -
Returned
to shareholders in Q2 FY24 through share repurchases and dividends$932 million - Increases outlook for FY24 overall comp store sales, pretax profit margin, and earnings per share
For the first half of Fiscal 2024, net sales were
CEO and President Comments
Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc., stated, “I am extremely pleased with our second quarter performance. Our comparable store sales increase of
Comparable Store Sales (FY2024 and FY2023) and Open-Only Comparable Store Sales (FY2022)
The Company’s comparable store sales by division in the second quarter of Fiscal 2024 and Fiscal 2023, and open-only comparable store sales by division in the second quarter of Fiscal 2022 were as follows:
|
Second Quarter FY2024 Comparable Store Sales1
|
Second Quarter
FY2023 Comparable Store Sales1 |
Second Quarter FY2022 Open-Only Comparable Store Sales1,2 |
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Marmaxx ( |
+ |
- |
+ |
||||
HomeGoods ( |
+ |
- |
+ |
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TJX Canada |
+ |
N.A. |
+ |
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TJX International ( |
+ |
N.A. |
+ |
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TJX |
+ |
N.A. |
+ |
1Comparable store sales exclude e-commerce sites (tjmaxx.com, marshalls.com, homegoods.com, sierra.com, tkmaxx.com, tkmaxx.de, and tkmaxx.at). See Comparable Store Sales, below, for further detail on these measures. 2This measure reports the sales increase or decrease of stores classified as comp stores at the beginning of Fiscal 2021 for the days they were open in the second quarter of Fiscal 2022 against sales of those stores for the same days in Fiscal 2020, prior to the emergence of the COVID-19 global pandemic. 3Combination of Marmaxx (T.J. Maxx and Marshalls) stores and Sierra stores. 4Combination of HomeGoods and Homesense stores. |
Net Sales by Division
The Company’s net sales by division in the second quarter of Fiscal 2024 and Fiscal 2023 were as follows:
|
Second Quarter Net Sales ($ in millions)1,2 |
Second Quarter FY2024 Reported Sales Growth |
Second Quarter FY2024 Sales Growth on a Constant Currency Basis3 |
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FY2024 |
FY2023 |
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Marmaxx ( |
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+ |
N.A. |
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HomeGoods ( |
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|
+ |
N.A. |
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TJX Canada |
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- |
+ |
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TJX International ( |
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+ |
+ |
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TJX |
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+ |
+ |
1Net sales in TJX Canada and TJX International include the impact of foreign currency exchange rates. 2Figures may not foot due to rounding. 3Reflects net sales adjusted for the impact of foreign currency; see Impact of Foreign Currency Exchange Rates, below. 4Combination of T.J. Maxx and Marshalls stores and tjmaxx.com and marshalls.com, as well as Sierra stores and sierra.com. 5Combination of HomeGoods and Homesense stores, and homegoods.com. 6Combination of T.K. Maxx and Homesense stores, as well as tkmaxx.com, tkmaxx.de, and tkmaxx.at. |
Margins
For the second quarter of Fiscal 2024, the Company’s pretax profit margin was
Gross profit margin for the second quarter of Fiscal 2024 was
Selling, general and administrative (SG&A) costs as a percent of sales for the second quarter of Fiscal 2024 were
Net interest income benefitted second quarter Fiscal 2024 pretax profit margin by 0.4 percentage points versus the prior year.
Impact of Foreign Currency Exchange Rates
Changes in foreign currency exchange rates affect the translation of sales and earnings of the Company’s international businesses into
The movement in foreign currency exchange rates had a neutral impact on the Company’s net sales growth in the second quarter of Fiscal 2024 versus the prior year. The overall net impact of foreign currency exchange rates had a
The movement in foreign currency exchange rates had a neutral impact on the Company’s net sales growth in the first half of Fiscal 2024 versus the prior year. The overall net impact of foreign currency exchange rates had a
A table detailing the impact of foreign currency on TJX’s net sales, pretax earnings, and margins, as well as those of its international businesses, can be found in the Investors section of TJX.com.
The foreign currency exchange rate impact to earnings per share does not include the impact currency exchange rates have on various transactions, which the Company refers to as “transactional foreign exchange.”
Inventory
Total inventories as of July 29, 2023 were
Cash and Shareholder Distributions
For the second quarter of Fiscal 2024, the Company generated
During the second quarter of Fiscal 2024, the Company returned
The Company continues to expect to repurchase approximately
Pension Payout Offer
The Company has offered eligible, former TJX Associates who have not yet commenced their pension benefit an opportunity to receive a voluntary lump sum payout of their vested pension plan benefit. As a result, the Company anticipates a non-cash settlement charge, which may negatively impact Fiscal 2024 earnings per share by approximately
Third Quarter, Fourth Quarter, and Full Year Fiscal 2024 Outlook
For the third quarter of Fiscal 2024, the Company is planning overall comparable store sales to be up
For the fiscal year ending February 3, 2024, the Company is now planning overall comparable store sales to be up
Based on the Company’s third quarter and full-year Fiscal 2024 outlook, the Company is planning fourth quarter Fiscal 2024 overall comparable store sales to be up
Stores by Concept
During the second quarter ended July 29, 2023, the Company increased its store count by 19 stores to a total of 4,884 stores and increased square footage by
|
Store Locations1 |
Gross Square Feet2 |
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|
Second Quarter FY2024 |
Second Quarter FY2024 |
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|
|
(in millions) |
||
|
Beginning |
End |
Beginning |
End |
In the |
|
|
|
|
T.J. Maxx |
1,304 |
1,305 |
35.4 |
35.4 |
Marshalls |
1,189 |
1,190 |
33.5 |
33.6 |
HomeGoods |
901 |
907 |
20.9 |
21.1 |
Sierra |
81 |
83 |
1.7 |
1.7 |
Homesense |
49 |
49 |
1.3 |
1.3 |
In |
|
|
|
|
Winners |
298 |
299 |
8.1 |
8.1 |
HomeSense |
152 |
154 |
3.5 |
3.6 |
Marshalls |
106 |
106 |
2.8 |
2.8 |
In |
|
|
|
|
T.K. Maxx |
632 |
636 |
17.6 |
17.7 |
Homesense |
78 |
79 |
1.5 |
1.5 |
In |
|
|
|
|
T.K. Maxx |
75 |
76 |
1.6 |
1.6 |
|
|
|
|
|
TJX |
4,865 |
4,884 |
128.0 |
128.4 |
1Store counts above include both banners within a combo or a superstore. 2Square feet figures may not foot due to rounding. |
Comparable Store Sales
For Fiscal 2023 and 2024, the Company returned to its historical definition of comparable store sales. However, while stores in the
About The TJX Companies, Inc.
The TJX Companies, Inc. is the leading off-price retailer of apparel and home fashions in the
Second Quarter Fiscal 2024 Earnings Conference Call
At 11:00 a.m. ET today, Ernie Herrman, Chief Executive Officer and President of TJX, will hold a conference call to discuss the Company’s second quarter Fiscal 2024 results, operations, and business trends. A real-time webcast of the call will be available to the public at TJX.com. A replay of the call will also be available by dialing (866) 367-5577 (toll free) or (203) 369-0233 through Tuesday, August 22, 2023, or at TJX.com.
Non-GAAP Financial Information
The Company has used non-GAAP financial measures in this press release. Non-GAAP financial measures refer to financial information adjusted to exclude or include, as applicable, from financial measures prepared in accordance with accounting principles generally accepted in
Important Information at Website
Archived versions of the Company’s conference calls are available in the Investors section of TJX.com after they are no longer available by telephone, as are reconciliations of non-GAAP financial measures to GAAP financial measures and other financial information. The Company routinely posts information that may be important to investors in the Investors section at TJX.com. The Company encourages investors to consult that section of its website regularly.
Forward-looking Statement
Various statements made in this release are forward-looking, and are inherently subject to a number of risks and uncertainties. All statements that address activities, events or developments that we intend, expect or believe may occur in the future are forward-looking statements, including, among others, statements regarding the Company’s anticipated operating and financial performance, business plans and prospects, dividends and share repurchases, the Company’s plans related to and expected impact of a pension payout offer, and third quarter, fourth quarter, and Fiscal 2024 outlook. These statements are typically accompanied by the words “aim,” “anticipate,” “aspire,” “believe,” “continue,” “could,” “should,” “estimate,” “expect,” “forecast,” “goal,” “hope,” “intend,” “may,” “plan,” “project,” “potential,” “seek,” “strive,” “target,” “will,” “would,” or similar words, although not all forward-looking statements contain these identifying words. Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Applicable risks and uncertainties include, among others, execution of buying strategy and inventory management; customer trends and preferences; competition; various marketing efforts; operational and business expansion; management of large size and scale; COVID-19 or other public health and public safety issues that affect our operations and consumers; merchandise sourcing and transport; data security and maintenance and development of information technology systems; labor costs and workforce challenges; personnel recruitment, training and retention; corporate and retail banner reputation; evolving corporate governance and public disclosure regulations and expectations with respect to environmental, social and governance matters; expanding international operations; fluctuations in quarterly operating results and market expectations; inventory or asset loss; cash flow; mergers, acquisitions, or business investments and divestitures, closings or business consolidations; real estate activities; economic conditions and consumer spending; market instability; severe weather, serious disruptions or catastrophic events; disproportionate impact of disruptions in the second half of the fiscal year; commodity availability and pricing; fluctuations in currency exchange rates; compliance with laws, regulations and orders and changes in laws, regulations and applicable accounting standards; outcomes of litigation, legal proceedings and other legal or regulatory matters; quality, safety and other issues with our merchandise; tax matters; and other factors that may be described in our filings with the Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K filed with the SEC. You are encouraged to read our filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. We caution investors, potential investors and others not to place considerable reliance on the forward-looking statements contained in this release. The forward-looking statements in this release speak only as of the date of this release, and we do not undertake any obligation to publicly update or revise our forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied in such statements will not be realized.
The TJX Companies, Inc. and Consolidated Subsidiaries |
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Financial Summary |
||||||||||
(Unaudited) |
||||||||||
(In Millions Except Per Share Amounts) |
||||||||||
|
Thirteen Weeks Ended |
Twenty-Six Weeks Ended |
||||||||
|
July 29,
|
July 30,
|
July 29,
|
July 30,
|
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|
|
|
|
|
||||||
Net sales |
$ |
12,758 |
|
$ |
11,843 |
$ |
24,541 |
|
$ |
23,249 |
|
|
|
|
|
||||||
Cost of sales, including buying and occupancy costs |
|
8,910 |
|
|
8,571 |
|
17,284 |
|
|
16,794 |
Selling, general and administrative expenses |
|
2,559 |
|
|
2,175 |
|
4,797 |
|
|
4,269 |
Impairment on equity investment |
|
— |
|
|
— |
|
— |
|
|
218 |
Interest (income) expense, net |
|
(38 |
) |
|
11 |
|
(75 |
) |
|
30 |
|
|
|
|
|
||||||
Income before income taxes |
|
1,327 |
|
|
1,086 |
|
2,535 |
|
|
1,938 |
Provision for income taxes |
|
338 |
|
|
276 |
|
655 |
|
|
541 |
|
|
|
|
|
||||||
Net income |
$ |
989 |
|
$ |
810 |
$ |
1,880 |
|
$ |
1,397 |
|
|
|
|
|
||||||
Diluted earnings per share |
$ |
0.85 |
|
$ |
0.69 |
$ |
1.62 |
|
$ |
1.18 |
|
|
|
|
|
||||||
Cash dividends declared per share |
$ |
0.3325 |
|
$ |
0.295 |
$ |
0.665 |
|
$ |
0.59 |
|
|
|
|
|
||||||
Weighted average common shares – diluted |
|
1,161 |
|
|
1,178 |
|
1,163 |
|
|
1,184 |
The TJX Companies, Inc. and Consolidated Subsidiaries |
||||
Condensed Balance Sheets |
||||
(Unaudited) |
||||
(In Millions) |
||||
|
July 29,
|
July 30,
|
||
|
|
|
||
Assets: |
|
|
||
Current assets: |
|
|
||
Cash and cash equivalents |
$ |
4,550 |
$ |
3,531 |
Accounts receivable and other current assets |
|
1,203 |
|
1,221 |
Merchandise inventories |
|
6,585 |
|
7,083 |
|
|
|
||
Total current assets |
|
12,338 |
|
11,835 |
|
|
|
||
Net property at cost |
|
6,166 |
|
5,390 |
|
|
|
||
Operating lease right of use assets |
|
9,406 |
|
8,987 |
Goodwill |
|
95 |
|
97 |
Other assets |
|
917 |
|
782 |
|
|
|
||
Total assets |
$ |
28,922 |
$ |
27,091 |
|
|
|
||
Liabilities and shareholders' equity: |
|
|
||
Current liabilities: |
|
|
||
Accounts payable |
$ |
4,438 |
$ |
4,085 |
Accrued expenses and other current liabilities |
|
4,261 |
|
3,990 |
Current portion of operating lease liabilities |
|
1,618 |
|
1,572 |
Current portion of long-term debt |
|
— |
|
500 |
|
|
|
||
Total current liabilities |
|
10,317 |
|
10,147 |
|
|
|
||
Other long-term liabilities |
|
915 |
|
917 |
Non-current deferred income taxes, net |
|
132 |
|
67 |
Long-term operating lease liabilities |
|
8,089 |
|
7,706 |
Long-term debt |
|
2,861 |
|
2,857 |
|
|
|
||
Shareholders’ equity |
|
6,608 |
|
5,397 |
|
|
|
||
Total liabilities and shareholders' equity |
$ |
28,922 |
$ |
27,091 |
|
|
|
The TJX Companies, Inc. and Consolidated Subsidiaries |
||||||
Condensed Statements of Cash Flows |
||||||
(Unaudited) |
||||||
(In Millions) |
||||||
|
Twenty-Six Weeks Ended |
|||||
|
July 29,
|
July 30,
|
||||
Cash flows from operating activities: |
|
|
||||
Net income |
$ |
1,880 |
|
$ |
1,397 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||
Depreciation and amortization |
|
467 |
|
|
438 |
|
Impairment on equity investment |
|
— |
|
|
218 |
|
Deferred income tax provision |
|
16 |
|
|
26 |
|
Share-based compensation |
|
70 |
|
|
58 |
|
Changes in assets and liabilities: |
|
|
||||
(Increase) in accounts receivable and other assets |
|
(15 |
) |
|
(98 |
) |
(Increase) in merchandise inventories |
|
(734 |
) |
|
(1,207 |
) |
(Increase) decrease in income taxes recoverable |
|
(28 |
) |
|
2 |
|
Increase (decrease) in accounts payable |
|
619 |
|
|
(311 |
) |
(Decrease) in accrued expenses and other liabilities |
|
(206 |
) |
|
(516 |
) |
Increase in net operating lease liabilities |
|
0 |
|
|
6 |
|
Other, net |
|
17 |
|
|
(7 |
) |
Net cash provided by operating activities |
|
2,086 |
|
|
6 |
|
|
|
|
||||
Cash flows from investing activities: |
|
|
||||
Property additions |
|
(820 |
) |
|
(693 |
) |
Purchase of investments |
|
(17 |
) |
|
(21 |
) |
Sales and maturities of investments |
|
18 |
|
|
11 |
|
Net cash (used in) investing activities |
|
(819 |
) |
|
(703 |
) |
|
|
|
||||
Cash flows from financing activities: |
|
|
||||
Payments on debt |
|
(500 |
) |
|
— |
|
Payments for repurchase of common stock |
|
(1,041 |
) |
|
(1,307 |
) |
Cash dividends paid |
|
(725 |
) |
|
(655 |
) |
Proceeds from issuance of common stock |
|
81 |
|
|
50 |
|
Other |
|
(29 |
) |
|
(33 |
) |
Net cash (used in) financing activities |
|
(2,214 |
) |
|
(1,945 |
) |
|
|
|
||||
Effect of exchange rate changes on cash |
|
20 |
|
|
(54 |
) |
|
|
|
||||
Net (decrease) in cash and cash equivalents |
|
(927 |
) |
|
(2,696 |
) |
Cash and cash equivalents at beginning of year |
|
5,477 |
|
|
6,227 |
|
|
|
|
||||
Cash and cash equivalents at end of period |
$ |
4,550 |
|
$ |
3,531 |
|
The TJX Companies, Inc. and Consolidated Subsidiaries |
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Selected Information by Major Business Segment |
||||||||||
(Unaudited) |
||||||||||
(In Millions) |
||||||||||
|
Thirteen Weeks Ended |
Twenty-Six Weeks Ended |
||||||||
|
July 29,
|
July 30,
|
July 29,
|
July 30,
|
||||||
Net sales: |
|
|
|
|
||||||
In |
|
|
|
|
||||||
Marmaxx |
$ |
7,903 |
|
$ |
7,236 |
$ |
15,269 |
|
$ |
14,107 |
HomeGoods |
|
2,011 |
|
|
1,856 |
|
3,977 |
|
|
3,892 |
TJX Canada |
|
1,223 |
|
|
1,248 |
|
2,261 |
|
|
2,330 |
TJX International |
|
1,621 |
|
|
1,503 |
|
3,034 |
|
|
2,920 |
Total net sales |
$ |
12,758 |
|
$ |
11,843 |
$ |
24,541 |
|
$ |
23,249 |
Segment profit: |
|
|
|
|
||||||
In |
|
|
|
|
||||||
Marmaxx |
$ |
1,084 |
|
$ |
933 |
$ |
2,112 |
|
$ |
1,837 |
HomeGoods |
|
175 |
|
|
50 |
|
319 |
|
|
172 |
TJX Canada |
|
192 |
|
|
197 |
|
309 |
|
|
324 |
TJX International |
|
32 |
|
|
105 |
|
70 |
|
|
118 |
Total segment profit |
|
1,483 |
|
|
1,285 |
|
2,810 |
|
|
2,451 |
General corporate expense |
|
194 |
|
|
188 |
|
350 |
|
|
265 |
Impairment on equity investment |
|
— |
|
|
— |
|
— |
|
|
218 |
Interest (income) expense, net |
|
(38 |
) |
|
11 |
|
(75 |
) |
|
30 |
Income before income taxes |
$ |
1,327 |
|
$ |
1,086 |
$ |
2,535 |
|
$ |
1,938 |
The TJX Companies, Inc. and Consolidated Subsidiaries
Notes to Consolidated Condensed Statements
-
During the second quarter ended July 29, 2023, the Company returned
to shareholders, repurchasing and retiring 6.7 million shares of its common stock at a cost of$932 million on a "trade date" basis and paying$550 million in shareholder dividends. During the six months ended July 29, 2023, the Company returned$382 million to shareholders, repurchasing and retiring 13.2 million shares of its common stock at a cost of$1.8 billion on a "trade date" basis and paying$1.05 billion in shareholder dividends. In February 2023, the Company announced that the Board of Directors had approved a new stock repurchase program that authorized the repurchase of up to an additional$0.7 billion of TJX common stock from time to time. Under this program and a previously announced program, TJX had approximately$2.0 billion available for repurchase as of July 29, 2023. TJX records the repurchase of its stock on a cash basis, and the amounts reflected in the financial statements may vary from the above amounts due to the timing of settlement of repurchases.$2.5 billion
-
During Fiscal 2023, the Company announced and completed the divestiture of its minority investment in Familia. As a result, the Company recorded an impairment charge of
in the first quarter of Fiscal 2023 representing the entire carrying value of the investment. This charge had a$218 million negative impact on diluted earnings per share for the first quarter of Fiscal 2023. Subsequently, the Company realized a$0.19 tax benefit when the Company completed the divestiture of this investment during the third quarter of Fiscal 2023. Together, these resulted in a net$54 million negative impact on diluted earnings per share for the fiscal year ended January 28, 2023.$0.14
View source version on businesswire.com: https://www.businesswire.com/news/home/20230815811438/en/
The TJX Companies, Inc.
Debra McConnell
Global Communications
(508) 390-2323
Source: The TJX Companies, Inc.
FAQ
What were the Q2 FY24 net sales for The TJX Companies, Inc.?
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