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TJX Companies (TJX) Third Quarter 2024 Earnings

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  • TJX Companies raised its full-year forecast for the third time this year and said it expects a strong holiday shopping season.
  • The off-price giant, which runs HomeGoods and Marshalls, reported quarterly results that beat Wall Street estimates.
  • TJX is taking market share from competitors as inflation-weary consumers look for a deal.

A Marshalls store in New York

Scott Mlyn | CNBC

TJX Companies raised its full-year forecast Wednesday and said it expects a strong holiday season after inflation-weary consumers generated another quarter of rising sales.

The off-price giant, which runs TJ Maxx, Marshall’s and HomeGoods, topped Wall Street estimates for revenue and earnings and beat expectations for comparable sales.

Here’s how TJX Companies performed in its fiscal third quarter ended Oct. 28, compared to what Wall Street expected, based on a survey of analysts by LSEG, formerly known as Refinitiv:

  • Earnings per share: $1.03 versus 99 cents expected
  • Income: $13.27 billion versus $13.09 billion expected

The company reported net income of $1.19 billion, or $1.03 per share, for the quarter, compared with $1.06 billion, or 91 cents per share, a year earlier. Sales reached $13.27 billion, up about 9% from $12.17 billion a year earlier.

For the third time this year, TJX Companies raised its full-year guidance. It now expects same-store sales to rise 4% to 5%, compared to a previous range of 3% to 4%, which is the range analysts expected ahead of the quarterly results announcement, according to StreetAccount.

TJX now expects earnings per share to be between $3.71 and $3.74, compared to a previous range of $3.66 to $3.72. The increase in earnings forecasts is in line with the $3.73 earnings per share expected by analysts, according to LSEG.

Read more retail news from CNBC

During the quarter, same-store sales climbed 7% at Marmaxx, or the combination of TJ Maxx and Marshall’s, and 9% at HomeGoods, both higher than analysts’ expectations, according to StreetAccount. Analysts expected comparable sales to rise 4% at Marmaxx and 6% at HomeGoods.

Overall, same-store sales increased 6%.

Shares opened down more than 3%. The company’s shares were up more than 16% year to date as of Tuesday’s close.

TJX navigated its fiscal year enjoying the benefits of being an off-price retailer during challenging macroeconomic times.

The company was able to attract buyers with a wide range of premium branded products because many of its suppliers had high inventories over the past year and were counting on TJX to help them clear out that excess . Its low-priced assortment has also attracted bargain-hungry customers who choose TJX over companies like Macy’s and Target to save money as persistent inflation takes a toll on their bank accounts.

Macy’s and Target, along with other industry peers, have consistently reported weak sales in their clothing and home goods categories. But the opposite happened at TJX. During the quarter, apparel sales “remained very strong” while home goods sales were “exceptional,” CEO Ernie Herrman said in a news release.

“Across our geographies and across our customers, our values ​​and exciting treasure hunt shopping experience continued to resonate with consumers,” the CEO said.

Target also reported earnings on Wednesday and easily beat Wall Street profit estimates. But the better-than-expected report was driven by its improved financial results, with sales falling again year-on-year.

The holiday shopping season is just getting started, but TJX already expects it to be successful, Herrman said.

“The fourth quarter is off to a strong start and we are continuing the many transactions we are seeing for big brands and big fashions in the market,” Herrman said. “We are strongly positioned as a gift-buying destination during this holiday sales period and are confident that our values ​​and new shipments in our stores and online throughout the season will once again be a major draw This year.”

By comparison, Target CEO Brian Cornell said it was too early to comment on early holiday sales, saying only that he was “watching trends closely.”

Read the full earnings release here.

Jim Cramer’s Investment Club

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