April 13, 2024

A HomeGoods shopping cart area in front of a T.J. Maxx store in Pinole, California, US, on Wednesday, May 3, 2023.

David Paul Morris | Bloomberg | Getty Images

TJX Cos. on Wednesday said holiday sales jumped 13% as shoppers hunting for deals flocked to the off-price retailer. 

Here’s how TJX did in its fourth fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG, formerly known as Refinitiv:

  • Earnings per share: $1.22 vs. $1.12 expected
  • Revenue: $16.41 billion vs. $16.21 billion expected

For the quarter ended February 3, the company reported net income of $1.4 billion, or $1.22 per share, compared with $1.04 billion, or 89 cents per share, a year earlier. Excluding an additional week in the quarter, TJX reported earnings per share of $1.12.

Sales rose to $16.41 billion, up about 13% from $14.52 billion a year earlier. The prior-year period’s sales included one fewer week.

Shares rose slightly in pre-market trading. The company’s stock was up more than 7% year to date, as of Tuesday’s close.

TJX, which runs T.J. Maxx, Marshall’s and HomeGoods, has become the de facto leader in the off-price space for its ability to offer a wide range of premium, branded products and entice higher income shoppers who are looking for cheaper options in the face of persistent inflation. 

Over the last year, it raised its sales and profit guidance numerous times. Ahead of the holiday season, it struck a positive tone as other retailers issued cautious or disappointing guidance amid slowing demand and an uncertain economy. 

During the holidays, consumers were laser-focused on finding the best deals and discounts, spending record amounts on Black Friday and Cyber Monday and pulling back when promotions weren’t available. TJX was well-positioned during the period because consumers were able to shop for a wide range of gifts and at prices that tend to be lower than competitors. 

TJX’s offering has been better than usual because so many of its suppliers had high inventories throughout 2022 and 2023 and relied on the off-price retailer to help clear that gut. Now that inventories are leveling out across the industry, Wall Street will be keen to see the state of TJX’s offering and if it can sustain the growth and demand it posted over the last year. 

TJX’s guidance appears to reflect that concern. For the current quarter, it expects earnings per share of 84 cents to 86 cents, light of the higher end of Wall Street’s expectations of 82 cents to 93 cents, according to LSEG. For the full year, it expects earnings per share of $3.94 to $4.02, compared to estimates of $3.88 to $4.40.

In a research note from Jane Hali and Associates, store checks across New York, Florida, Texas and California showed “fewer notable brand names across luxury, affordable luxury and contemporary.” While inventory levels in the previous quarter were flat, some stores looked to have too much inventory and “too much clearance,” the note said. 

Read the full earnings release here

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