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TJX Cos. Inc.’s stock rose 2.8% early Wednesday to put it on track for a fresh record, as investors weighed better-than-expected fiscal fourth quarter sales against guidance for fiscal 2025 that lagged estimates.
Also supporting the stock, the Framingham, Mass.-based company said it expects to increase its dividend by 13% and buy back $2.0 billion to $2.5 billion of stock in fiscal 2025.
TJX
TJX,
posted net income of $1.403 billion, or $1.22 a share, for the quarter through Feb. 3, up from $1.038 billion, or 89 cents a share, in the year-earlier period. Adjusted per-share earnings came to $1.12, matching the FactSet consensus.
Sales rose to $16.411 billion from $14.520 billion, ahead of the $16.202 billion FactSet consensus. Same-store sales rose 5% to beat the FactSet consensus for a rise of 4.3%.
CEO Ernie Herrman said the company had a strong finish to 2023 with comparable sales growing at every division. That’s after the company’s guidance for the fourth quarter was below consensus.
The company’s guidance for the first quarter and full fiscal year 2025 was also soft. TJX is expecting first-quarter same-store sales to rise 2% to 3% and for EPS to range from 84 cents to 86 cents. The FactSet consensus is for same-store sales growth of 3.8% and EPS of 86 cents.
For fiscal 2025, the company is guiding for same-store sales to be up 2% to 3% and for EPS to range from $3.94 to $4.02. The FactSet consensus is for same-store sales to grow 3.6% and for EPS of $4.11.
TJX, which also operates the Marmaxx and HomeGoods chains, said same-store sales rose 5% at Marmaxx in the quarter and were up 75 at HomeGoods.
At TJX Canada, same-store sales rose 6%, and were up 3% at TJX International, which includes Europe and Australia. Same-store sales at the flagship TJX brand were up 5%.
Gross profit margins stood at 29.8%, a 3.7 percentage point increase from the year-earlier period.
The stock has gained 31% in the last 12 months, while the S&P 500
SPX,
has gained 28%.
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