TJX Companies, Inc. reported second-quarter net sales of $11.8 billion, down 2% from the second quarter of fiscal 2022.
Sales from the Company’s U.S. model stores decreased 5% compared to a 21% increase in U.S.-only model store sales in the second quarter of Fiscal 2022. Net income was $809 million and diluted earnings per share were 69 cents versus 64 cents per share in the second quarter of fiscal 2022.
Commenting on the results, Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc., said in a statement, “I am very pleased that our second quarter pretax profit margin exceeded our plan and that earnings per action has reached the peak. of our advice. On the top line, US component sales for the second quarter were weaker than expected as we believe historically high inflation has impacted consumer discretionary spending.
“While we saw more softness in our home categories, we were very pleased that offsetting sales in our overall apparel business at Marmaxx were slightly positive each month of the quarter. Additionally, it was good to see improved profitability across our international divisions. We remain focused on our long-term vision of becoming an increasingly profitable company with revenues of more than $60 billion,” added Herrman.
TJX Announces 5% Increase in First Half Sales
For the first half of Fiscal 2023, net sales were $23.2 billion, an increase of 5% over the first half of Fiscal 2022. Comparison store sales in the United States United for the period decreased 2% compared to an increase of 19% for the first half of fiscal 2022. .
First-half net income was $1.4 billion, while diluted earnings per share were $1.18 compared to $1.08 in the first half of FY2022 and diluted earnings per share adjusted was $1.36.
TJX updates full-year earnings outlook
For the third quarter, the company expects a pretax profit margin of 10.1% to 10.4% and diluted earnings per share of 77 cents to 81 cents.
For the third quarter, the company expects U.S. same-store sales to decline 3% to 5% from a 16% increase in the third quarter of fiscal 2022.
For the full year, the company raises its pretax profit margin outlook to 9.3% to 9.5% and an adjusted pretax profit margin of 9.7% to 9.9%, compared to its previous pretax profit margin forecast of 9.2. to 9.4% and an adjusted pre-tax profit margin of 9.6% to 9.8%.
For the full year, the company’s updated guidance for diluted earnings per share calls for a range of $2.87 to $2.95 and adjusted diluted earnings per share of $3.05 to $3.13. , compared to its previous guidance for diluted earnings per share of $2.94 to $3.01. and adjusted diluted earnings per share of $3.13 to $3.20.
U.S. same-store sales are expected to decline 2% to 3%, compared to its previous forecast of a 1% to 2% increase.
The company’s outlook for the third quarter and full year implies that the fourth quarter pretax profit margin will be 10.1% to 10.4% and earnings per share 92 cents to 96 cents and that sales same-store sales in the United States will remain flat at 1% compared to a 13% increase in the fourth quarter of fiscal 2022.
During the second quarter ended July 30, 2022, the Company increased its store count by 21 stores for a total of 4,736 stores.