TJX Companies Inc (NYSE:TJX), the parent company of TJ Maxx, has reported second-quarter results that were well above analysts’ expectations, sending its shares higher in Wednesday pre-market trading.
The off-price apparel and home fashion retailer said customer traffic increased in all divisions, with very strong sales of apparel and accessories and a big improvement in home sales.
“TJX Canada and TJX International also both delivered comp sales growth and customer traffic increases,” president and CEO Ernie Herrman said in a statement.
“With our above-plan results, we are raising our full-year outlook for comparable store sales, pretax profit margin, and earnings per share.”
Net sales for the period to July 29, 2023, jumped 8% to $12.8 billion, with comparable sales up 6%, beating the company’s own target and also above the $12.4 billion predicted by Wall Street.
Diluted earnings per share (EPS) jumped 23% to $0.85, above the consensus estimate of 10 analysts, according to Zacks Investment Research.
The company is now planning overall 3Q comparable store sales to be up 3% to 4% and diluted EPS to be in the range of $0.95 to $0.98.
For the fiscal year ending February 3, 2024, it is now planning overall comparable store sales to be up 3% to 4% and diluted EPS to be in the range of $3.66 to $3.72.
Its shares were up 3.3% at $88.57 ahead of the market opening.
Contact the author at stephen.gunnion@proactiveinvestors.com