FRAMINGHAM, MA – TJX Companies, Inc. (NYSE:) reported strong first-quarter results, with earnings beating analysts’ expectations, although its second-quarter guidance missed Wall Street’s estimates, sending the stock slightly lower.
The leading value home goods and apparel retailer announced an increase in adjusted earnings per share (EPS) of 22% and revenue of 6% compared to the same period last year.
For the first quarter ended May 4, 2024, TJX reported adjusted earnings per share of $0.93, $0.05 above analysts’ estimates of $0.88. Revenue reached $12.48 billion, slightly below the consensus estimate of $12.49 billion.
The company’s pre-tax profit margin increased to 11.1%, up 0.8 percentage points from the prior year, reflecting strong operating performance. TJX also returned $886 million to shareholders through share repurchases and dividend payments during the quarter.
CEO Ernie Herrman expressed satisfaction with the company’s performance, noting a 3% increase in consolidated comparable store sales, driven entirely by increased customer transactions. “We saw sales growth in every division driven entirely by customer transactions, highlighting the strength of our value proposition,” Herrman said.
Despite the positive results, TJX shares posted a modest 0.7% decline following its earnings report, weighed down by softer guidance for the upcoming quarter. TJX expects second-quarter 2025 EPS range of $0.88 to $0.90, below analyst consensus of $0.94.
However, the company raised its full-year 2025 EPS guidance to a range of $4.03 to $4.09, compared to the consensus estimate of $4.10.
Looking ahead, Herrmann remains optimistic, noting a strong start to the second quarter and numerous opportunities for growth throughout the year.
“Long-term, we are excited about the potential we see to drive customer transactions and sales, capture additional market share and increase TJX’s profitability,” he added.
The company’s focus on providing value and shopping convenience continues to resonate with consumers, positioning TJX favorably in the competitive retail environment. Despite the cautious near-term outlook, TJX’s ability to attract customers and effectively manage profitability suggests continued potential for market share gains.
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