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2022-05-18 19:46

TJX Companies Inc. stock closed 7.0% up on Wednesday after the company reported strong financial results for the first quarter of fiscal year 2023. The TJX Companies, Inc. is the world's largest off-price retailer of clothes and home furnishings.
TJX Q1 financial highlights
Net sales during the first quarter of Fiscal 2023 was $11.4 billion, up 13% from the first quarter of Fiscal 2022. In the first quarter of Fiscal 2022, U.S. comp store sales growth was unchanged after a 17% in open-only comp store sales. The first quarter of Fiscal 2023 brought in $587 million in net income, with GAAP diluted profits per share of $.49, compared to $.44 in the first quarter of Fiscal 2022. Adjusted diluted earnings per share were $.68 after a $.19 charge for a write-down of the Company's minority ownership in Familia.

In first quarter of fiscal 2023, the company returned $907 million to shareholders through share repurchases and dividends.

The $70.63 billion company that trades at a PE multiple of 22.31 is still down more than 20% for the year.

What TJX forecasts for the future
The following financial forecast provided by the company is for second quarter, full year and second half of fiscal 2023.

The Company is thrilled with its sales performance as the second quarter begins. The Company expects U.S. comparable store sales to decline 1% to 3% in the second quarter of Fiscal 2023, compared to a 21% growth in U.S. open-only comp store sales in the second quarter of Fiscal 2022. The Company anticipates diluted profits per share in the range of $.65 to $.69 in Q2 of Fiscal 2023.

The Company now estimates US comparable store sales to climb 1% to 2% in Fiscal 2023, compared to a 17% increase in US open-only comp store sales in Fiscal 2022, which represents the Company's actual first quarter US comp sales and second quarter US comp sales plan.

Pretax margin is expected to be in the range of 9.2% to 9.4% for Fiscal 2023, while adjusted pretax margin is expected to be in the range of 9.6% to 9.8%. The company anticipates diluted profits per share of $2.94 to $3.01, with adjusted diluted earnings per share of $3.13 to $3.20.

In the second half of Fiscal 2023, the Company expects a 4% to 5% growth in comparable store sales in the United States, compared to a 14% increase in open-only comp store sales in the second half of Fiscal 2022. The Company's full-year Fiscal 2023 projection also predicts a double-digit pretax profit in the second half of Fiscal 2023.