TJX Cos. reported strong fiscal fourth-quarter earnings that met views early Wednesday, with revenue growth accelerating. The off-price retailer guided lower. But TJX also announced a dividend hike and stock buyback plan. Shares edged higher, hitting fresh all-time highs.
Massachusetts-based TJX sells off-price apparel and home goods via TJ Maxx and other chains such as Marshalls, HomeGoods and HomeSense. TJX competes against Ross Stores and Burlington Stores in the off-price apparel segment.
TJX Earnings
TJX reported earnings of $1.12 a share, up 26% vs. a year earlier, picking up from Q3's 20%. Revenue climbed 13% to $16.41 billion, the third straight quarter of slowly accelerating growth. Consolidated same-store sales rose 5%.
Analysts expected TJX earnings of $1.12 a share on revenue of $16.202 billion, with same-store sales up 4.3%.
TJX sees Q1 EPS of 84-86 cents with comps up 2%-3%. That's vs. analyst estimates of 86 cents and 3.8%, respectively. For fiscal 2025, the discounter expects earnings of $3.94-4.02 and same-store sales of 2%-3%. Wall Street had forecast per-share profit of $4.11 with comps growth of 3.6%.
Dividend, Buyback Hike
TJX raised its quarterly dividend to 37.5 cents a share, up 13% from the prior 33.25 cents.
The retailer also plans to buy $2 billion-$2.5 billion of its stock, replacing a prior repurchase authorization with $1 billion.
TJX Stock
TJX stock edged up 0.6% to 101.10 after hitting a record 102.84 intraday. TJX is greatly extended from any buy point.
Ross Stores stock, also at record highs, nudged 0.55% higher Wednesday.
Burlington Stores stock dipped 0.65%. Shares have rebounded from their 10-week line and cleared a consolidation, offering a buying opportunity. Both Ross and Burlington are set to report next week.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
