Fourth-quarter results at TJX Cos. exceeded expectations in part because of a contribution of a resurgent home business.
Net income was $1.4 billion, or $1.22 per diluted share, versus $1.04 billion, or 89 cents per diluted share, in the year-earlier quarter, the company reported
TJX topped a Yahoo Finance-published analyst consensus estimate of $1.12 per diluted share and revenues of $16.21 billion.
Comparable sales gained 5% year over year with Marmaxx, including T.J. Maxx and Marshalls, up 5%; HomeGoods, up 7%; TJX Canada, up 6%; and TJX International, up 3% TJX indicated.
Net sales were $16.41 billion versus $14.52 billion in the year-previous quarter.
For the full year, net income was $4.47 billion, or $3.86 per diluted share, versus $3.5 billion, or $2.97 per diluted share, in the year earlier, the company stated.
Net sales were $54.22 billion versus $49.94 billion in the year previous.
In a conference call, Ernie Herrman, TJX president and CEO, said the company turned in a strong fourth-quarter performance, with all comp increases resulting from growth in transactions, which he said suggests it can continue to gain market share. Looking at the full year, Herrman said Marmaxx sales advanced in the apparel and home businesses. HomeGoods gained throughout the year, with accelerating comp growth in the second half. In both divisions, he said, gains came in all regions and demographics. He added, “The first quarter is off to a good start.”
Herrman said TJX home sales gains are trending ahead of the market, which he considered more evidence that the company can expand market share going forward. He pointed out that more than a third of the business at TJX this year will come from its home operations.
Furnishings-oriented HomeSense, one of the smaller TJX operations with financials tucked into those of HomeGoods, has made strides as well, Herrman said, noting that adjustments made to the banner assortment mix had positive results and that TJX will continue to add HomeSense stores in the year ahead after opening nine stores in the previous fiscal year to total 55. The company opened 25 HomeGoods stores in that period, a total of 919.
As he announced the fourth-quarter results, Herrman said, “I am extremely proud of the performance of our teams again in 2023. Thanks to their excellent execution of our great business model, we delivered outstanding results on both the top and bottom lines that exceeded our expectations. We surpassed $50 billion in annual sales, a milestone for our company. We brought our customers exciting values on great brands and fashions and a treasure-hunt shopping experience every day. Throughout the holiday season, we shipped a fresh assortment of gift-giving selections to our stores and online, which clearly resonated with consumers. Comparable store sales for the company increased 5% both for the fourth quarter and full year, well above our original plans for 2023. We saw comp sales growth at every division driven by customer transactions, which underscores our confidence in our ability to gain market share across all of our geographies. We had a very strong finish to 2023 and started the new year in a position of strength, with the first quarter off to a good start. We are energized and laser-focused on capitalizing on our opportunities for the year ahead, and, as always, we’ll strive to beat our plans.”
