TJX Cos. (TJX) Tops Q3 EPS by 6c, Offers Guidance

TJX Cos. (NYSE: TJX) reported Q3 EPS of $0.86, $0.06 better than the analyst estimate of $0.80. Revenue for the quarter came in at $12.2 billion versus the consensus estimate of $12.29 billion.

GUIDANCE:

TJX Cos. sees FY2023 EPS of $3.07-$3.11 vs $3.10 consensus.

• For the full year Fiscal 2023, the Company is maintaining the high end of its outlook for adjusted pretax profit margin. The Company expects pretax profit margin to be 9.3% to 9.4% and adjusted pretax profit margin to be 9.8% to 9.9%. The Company’s adjusted pretax profit margin plan excludes a 0.4 percentage point negative impact from the first quarter Fiscal 2023 charge related to a write-down of the Company’s minority investment in Familia.
• For the full year Fiscal 2023, the Company now expects diluted earnings per share to be $2.93 to $2.97 and adjusted diluted earnings per share to be $3.07 to $3.11. The change in the high end of the Company’s full year Fiscal 2023 adjusted earnings per share outlook is a result of an expected $.02 negative impact due to unfavorable foreign exchange rates. The Company’s adjusted diluted earnings per share plan excludes the negative impact from the first quarter Fiscal 2023 charge related to a write-down of the Company’s minority investment in Familia, as well a third quarter Fiscal 2023 tax benefit related to the divestiture of its minority investment in Familia.
• For the full year Fiscal 2023, the Company is increasing its outlook for U.S. comparable store sales and is now planning a decrease of 1% to 2% versus a 17% U.S. open-only comp store sales increase in Fiscal 2022.
• For the fourth quarter of Fiscal 2023, the Company now expects pretax profit margin to be 9.5% to 9.8% and diluted earnings per share to be $.85 to $.89. This guidance now assumes that most of the third quarter Fiscal 2023 timing of expenses benefit will reverse out in the fourth quarter of Fiscal 2023. For the fourth quarter of Fiscal 2023, the Company is increasing its outlook for U.S. comparable store sales and is now planning them to be flat to up 1% versus a 13% U.S. open-only comp store sales increase in the fourth quarter of Fiscal 2022.

For earnings history and earnings-related data on TJX Cos. (TJX) click here.

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