TJX Companies Shares Gain On Solid Q2 Earnings Beat, Raised FY24 Guidance

TJX Companies Inc TJX reported second-quarter FY24 sales growth of 8% year-on-year to $12.76 billion, beating the analyst consensus estimate of $12.45 billion.

Overall comparable store sales increased 6% versus last year, with Marmaxx store sales increasing 8% and HomeGoods climbing 4%.

Gross profit margin for the quarter expanded 260 basis points to 30.2%.

Selling, general and administrative expenses climbed 17.6% to $2.55 billion.

The company held $4.6 billion in cash and equivalents as of July 29, 2023. The company generated $1.3 billion of operating cash flow in the quarter.

Total inventories at the quarter end were $6.6 billion versus $7.1 billion at the 2Q23 end.

EPS of $0.85 beat the analyst consensus of $0.77.

TJX had approximately $2.5 billion available for repurchase as of July 29, 2023. TJX continues to expect to repurchase about $2 billion – $2.50 billion in fiscal 2024.

Outlook: TJX now plans overall comparable store sales to be up 3%-4% (prior view up 2%-3%) for FY24.

The company raised FY24 adjusted EPS outlook to $3.56 - $3.62 (prior view $3.39 - $3.48) against the consensus of $3.59.

For Q3, TJX expects comparable store sales to be up 3% to 4%. It expects EPS of $0.95 - $0.98, against the consensus of $0.96.

Price Action: TJX shares are trading higher by 2.50% at $87.91 in premarket on the last check Wednesday.