The TJX Cos. net income topped $1 billion in the fourth quarter, although HomeGoods posted negative year-over comparable store sales against strong 2021 results when consumers were emerging from pandemic stay-at-home mandates.
Net income was $1.04 billion, or 89 cents per diluted share, versus $940 million, or 78 cents per diluted share, in the year-before period. Net sales were $14.52 billion versus $13.85 billion in the year-previous quarter, TJX noted. An analyst consensus estimate published by Yahoo Finance called for earnings per share of 89 cents and sales of $14.07 billion.
Comparable fourth-quarter sales in the HomeGoods division were down 7%, while those at Marmaxx stores, the division that includes T.J. Maxx and Marshalls, were up 7%, the company reported. As such, overall comps for TJX operations in the United States were up 4%. Fourth quarter net sales were up 8% at Marmaxx to $8.98 billion; down 4% at Home Goods to $2.42 billion; up 3% in Canada to $1.3 billion; and up 1% at TJX International to $1.82 billion.
For the full fiscal year, net income was $3.5 billion, or $2.97 per diluted share, versus $3.28 billion, or $2.70 per diluted share, in the year before. Adjusted diluted earnings per share were $3.11 versus $2.85 in the year-prior period, according to the company.
Full-year sales comps were up 3% at Marmaxx, down 11% at HomeGoods for a flat U.S. reading in the 12 months. Net sales were $49.94 billion versus $48.55 billion in the year previous.
In a conference call, Ernie Herrman, TJX president and CEO, said the company entered the first quarter of this fiscal year in a solid position and was looking forward to a strong purchasing environment as the weakness of some other retailers makes more goods available and as economic uncertainty drives more frugal consumers to its stores. He expects TJX to capitalize on the attractiveness of the TJX value proposition and the expected availability of goods for some time as competing retailers struggle and close stores, with a consequential diminishment of purchasing. The economic and retail environment today, he said, have helped boost TJX customer traffic slightly but average ticket more. The value proposition it offers continues to be attractive, but the brands that TJX stores can offer today provide an additional advantage. In combination, he indicated, TJX banners today are a better resource in general and even cool places to shop for younger consumers, he maintained.
“We’re starting to differentiate ourselves even more because of brands,” Hermann said.
In announcing the financial results, Herrman said, “By staying focused on our off-price fundamentals, which have served us well through many kinds of retail and macro environments, we continued to bring customers around the world exciting values and a treasure-hunt shopping experience, every day. Our eclectic, rapidly changing mix of gift-giving assortments clearly resonated with consumers this holiday season. We saw fourth-quarter U.S. comp store sales growth of 4%, well above our plan, and U.S. customer traffic increase. Marmaxx delivered a very strong 7% comp increase, its highest quarterly comp of the year, driven by excellent sales in its apparel and accessories categories For the full year, total sales neared $50 billion, U.S. comp store sales were flat, and overall profitability improved. During the year, our apparel businesses, including accessories, across the company were strong. Sales at our home businesses overall were softer as we saw extraordinary growth during the two prior years when consumers focused on purchases for their homes. At our international divisions, we saw total sales increases and improved profitability for the year. fiscal 2024 is off to a strong start and we remain confident in improving our profitability this year and reaching our pretax profit margin target of 10.6% by fiscal 2025.”
