Categories AlphaGraphs, Earnings, Retail

TJX Companies reports comp sales growth of 5% for Q1 FY20; provides Q2 outlook

The TJX Companies (NYSE: TJX) reported a comp store sales growth of 5% for the first quarter of fiscal 2020, helped by the customer traffic. Earnings per share increased to $0.57 from $0.56 in the prior-year quarter. Sales rose 7% to $9.28 billion. TJX stock was trading in the positive territory in the early hours of pre-market trading and lost the momentum later.

A graphic on TJX Companies earnings results

For the second quarter of fiscal 2020, the off-price retailer expects EPS to be in the range of $0.61 to $0.62, a 5% to 7% increase over the prior year’s EPS of $0.58. The company expects the combination of incremental freight costs and store wage increases to negatively impact second quarter EPS growth by 2% to 3%.

For the fiscal year ending February 1, 2020, TJX lifted its EPS guidance. The company now expects FY20 EPS to be in the range of $2.56 to $2.61 versus the prior estimate of $2.55 to $2.60. This guidance reflects an assumption that the combination of incremental freight costs and store wage increases will negatively impact EPS growth by 3% to 4%.

Commenting on comp store sales growth, CEO Ernie Herrman stated, “It is terrific to see the continued strength of our largest division, Marmaxx, with an outstanding 6% comp increase. Further, Marmaxx’s apparel and home categories were both very strong. Once again this quarter, customer traffic was the primary driver of our consolidated comp increase and was up at each of our four major divisions.”

Kohl’s Corp (KSS) and J.C. Penney (JCP) reported their recently ended quarter’s results before the market today. Kohl’s tanked 12% in the pre-market as it slashed the earnings forecast and reported disappointing Q1 results. J. C. Penney also plunged about 8% in the early hours after it missed Q1 earnings target.

TJX stock, which dropped slightly by 0.13% to $52.97 on Monday, had advanced 18% since the beginning of 2019 and 25% in the last 12 months.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top