TJX Companies raises guidance after strong sales, but falls short of expectations.

From CNBC: 2024-08-21 08:26:08

TJX Companies raised its full-year guidance after strong sales, but fell short of Wall Street’s expectations. For the current quarter, earnings per share are projected at $1.06 to $1.08, compared to estimates of $1.10. TJX reported earnings per share of 96 cents versus the expected 92 cents and revenue of $13.47 billion versus $13.31 billion anticipated.

Throughout fiscal year 2024, TJX saw strong sales gains and robust guidance. The retailer is expanding globally, with a 35% stake in Brands for Less, a Dubai-based retailer, for $360 million. TJX’s consolidated comparable store sales rose by 4%, primarily driven by Marmaxx division with a 5% increase in comparable sales.

CEO Ernie Herrman stated that TJX is well-positioned for the fall and holiday seasons and excited for future global growth. Shares are up 21% year-to-date, reaching new highs after strong quarterly earnings. The retailer has been taking market share from competitors like Target and Macy’s and appeals to price-sensitive consumers seeking good deals.

Analysts believe TJX’s business model is resilient in any economic environment. In good times, lower- to middle-income consumers buy discretionary items, while in tough times, higher income shoppers seek deals. However, a potential sharp downturn in consumer spending could impact the company, despite its value offerings.



Read more at CNBC:: TJX Companies (TJX) earnings Q2 2025