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TJX beats plan, lifts full-year profit outlook despite sluggish Marmaxx
Consolidated comparable sales rose 4% and adjusted EPS increased 11% to $1.22, while the company raised its long-term store target by 500 locations to 7,500.
TJX Companies topped its own plan for the second quarter, driven by strength across most of its store brands and prompting management to raise its full-year profit outlook, according to results reported by Yahoo Finance.
Consolidated comparable sales climbed 4%, and adjusted earnings per share rose 11% to $1.22. TJX also highlighted HomeGoods performance, where comparable sales grew 7%, the average basket was higher, and segment profit margin expanded 240 basis points to 12.4%, helped by lower tariff costs. Management linked the home category's momentum to a year-round gifting push at HomeGoods.
TJX Canada and TJX International posted comparable sales growth of 6% and 7%, respectively, with international margin expanding 210 basis points to 7.3% on a constant currency basis. Executives also pointed to customer response to a second TK Maxx store in Spain.
The main drag came from Marmaxx, the TJ Maxx and Marshalls business, where comparable sales rose just 1% as transactions declined. Yahoo Finance reports that CEO Ernie Herrman attributed the underperformance to execution on store mix and inventory timing, while noting added pressure expected into the third quarter tied to higher fuel rates. The company said it returned $1.3 billion to shareholders in the quarter, including $798 million in buybacks and $529 million in dividends, and lifted its long-term store target by 500 locations to 7,500, with new openings starting at a 4% pace next year.