- TJX Companies Inc (NYSE:TJX) reported a first-quarter FY23 sales growth of 13% year-on-year, to $11.41 billion, missing the consensus of $11.61 billion.
- The U.S. comparable store sales remained flat versus last year, with Marmaxx store sales increasing 3% and HomeGoods declining 7%.
- The gross profit margin for the quarter contracted 20 basis points to 27.9%.
- Selling, general and administrative expenses rose 1.4% to $2.1 billion.
- The company held $4.3 billion in cash and equivalents as of April 30, 2022. The company used $(634) million of operating cash flow due to the timing of inventory purchases and related accounts payable.
- Total inventories at the 1Q23 end were $7 billion versus $5.1 billion at the 1Q22 end.
- Adjusted EPS of $0.68 beat the analyst consensus of $0.61.
- TJX expects to repurchase about $2.25 billion – $2.50 billion in fiscal 2023.
- Outlook: TJX expects FY23 U.S. comparable store sales growth of 1% to 2% (prior view 3% to 4%).
- The company expects FY23 adjusted EPS of $3.13 - $3.20, against the consensus of $3.15.
- For Q2, TJX expects U.S. comparable store sales to be down 1% to down 3%. It expects EPS of $0.65 - $0.69.
- Price Action: TJX shares are trading higher by 9.80% at $61.70 on the last check Wednesday.
