TJX Companies Inc (NYSE:TJX), the parent company of TJ Maxx, is likely to report a solid increase in second-quarter revenue and earnings when it reports back to the market on Wednesday, August 16.
The retailer is expected to deliver revenues of $12.4 billion, up 4.7% from a year earlier, with earnings of $0.76 per share based on the consensus estimate of 10 analysts, according to Zacks Investment Research. That would be a 10% improvement on 2Q 2022.
According to Zacks, TJX has benefitted from customers visiting its stores as well as those buying online, undertaking several initiatives to strengthen its e-commerce business.
“We believe that the company’s off-price model, along with its strategic store locations, impressive brands and fashion products are likely to have aided its performance in the quarter under review,” commented Zacks.
Delivering its first-quarter results in May, TJX increased its annual profit guidance as it benefitted from a reduction in cost pressures despite a cautious approach to discretionary spending.
However, a 3% rise in 1Q net sales to $11.8 billion fell short of expectations.
At the time, the retailer said it expected adjusted profit per share for 2024 between $3.39 and $3.48, compared to the previous range of $3.29 to $3.41.
Contact the author at stephen.gunnion@proactiveinvestors.com