TJX Companies Beats On Q4 Topline, Surpasses $50B Milestone In Annual Sales, Plans Stock Repurchase And Dividend Increase

TJX Companies, Inc. TJX reported fourth-quarter FY24 sales of $16.41 billion, beating the analyst consensus of $16.21 billion. Revenues jumped 13% year over year.

The company reported adjusted earnings per share, which excludes an estimated benefit of $0.10 from the extra week in the quarter, of $1.12, in line with the street view of $1.12.

For the 14-week fourth quarter of fiscal 2024, net income was $1.4 billion and diluted earnings per share were $1.22, up 37% versus $0.89 in the 13-week fourth quarter of fiscal 2023. 

Fourth quarter consolidated comparable store sales increased 5%, above the company’s plan, and were entirely driven by an increase in customer transactions.

Quarterly gross profit margin was 29.8%, a 370 basis point increase year over year. 

“We surpassed $50 billion in annual sales, a milestone for our company,” said Ernie Herrman, Chief Executive Officer and President of TJX Companies.

Total inventories as of February 3, 2024, were $6 billion, compared to $5.8 billion at the end of fiscal 2023. For the fourth quarter, the company generated $2.8 billion of operating cash flow.

Share Repurchase: Today, TJX also announced its plan to repurchase approximately $2.0 to $2.5 billion of stocks during the fiscal year ending February 1, 2025. 

The new authorization represents approximately 2.2% of the company’s outstanding shares at current prices. 

Dividend: The company intends to increase the regular quarterly dividend on its common stock, expected to be declared in April 2024 and payable in June 2024, to $0.375 per share. This would represent a 13% increase over the current per share dividend.

Outlook: The company sees the first quarter of FY25 EPS of $0.84 to $0.86 versus $0.87 estimate.

For fiscal 2025, the company is expecting EPS of $3.94 to $4.02 versus $4.11 estimate.

Price Action: TJX shares are trading higher by 0.18% to $100.70 on the last check Wednesday.