TJX stock rises by 10% after announcing its financial results for Q1 2023

TJX Cos (NYSE: TJX), a top home fashions and off-price apparel retailer based in the United States, had its stock rise by 10% after announcing its operating and sales results for Q1. The company reported $11.4 billion in net sales in Q1 of 2023, representing a 13% increase compared to what is reported in the same quarter of the previous fiscal year. 

Furthermore, TJX reported an EPS of $0.68 in this quarter, which is 8 cents better than the $0.6 analyst estimate. However, total revenue in the quarter came to about $11.4 billion, which is less than the $11.6 billion analyst consensus estimate. 

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TJX tops analyst estimates by $0.08

TJX Companies President and Chief Executive Officer, Ernie Herrman, said:

I am particularly pleased that our first-quarter pretax profit margin and earnings per share, each on an adjusted basis, exceeded our plans even though our sales were slightly below our planned range. This underscores the power of our flexible, off-price business model when we execute well.

The CEO claimed that he was delighted with the company’s performance in the first quarter and recognized the continued dedication and commitment of the talented Associates and workers who help bring exceptional value on quality, branded merchandise to the customers daily. 

Mr Herrman continued by saying:

We believe our value proposition is as appealing as ever for consumers in today’s retail environment, and we are excited about our initiatives to drive customer traffic and sales. We remain focused on our long-term vision to become an increasingly profitable, $60-billion-plus company.

He claimed that for the full year of 2023, they see a chance to further enhance profitability. He also highlighted how Marmaxx, their biggest division, delivered a 3% increase in comp store sales. 

Financial outlook

For the full-year financial outlook for the 2023 fiscal year, TJX expects a 1% increase in US comparable store sales. The company also expects its pretax margin to lie between 9.2% and 9.4%.