TJX Companies forecasts revised down
2023.02.22 09:12
TJX Companies forecasts revised down
By Kristina Sobol
Budrigannews.com – Companies like TJX (NYSE:) offered an unfavorable outlook for the first quarter and the year as a whole, despite rising costs. were $0.89, which was in line with the estimates. Revenue increased 4.8 percent to $14.52 billion, beating the consensus estimate of $14.06 billion.
The fact that the gross profit margin fell 100 points to 26.1% from the 27.8% consensus was disappointing to analysts.
“This holiday season, our diverse and constantly shifting assortment of gift sets clearly resonated with customers. U.S. comp store sales increased by 4% in the fourth quarter, exceeding our expectations, and customer traffic increased in the United States. Ernie Herrman, chief executive officer and president of The TJX Companies, stated, “Excellent sales in its apparel and accessories categories drove Marmaxx to deliver a very strong 7% comp increase, which was its highest quarterly comp of the year.”
The company anticipates EPS of $0.68-0.71 for this quarter, with a $3.35 (up or down 6 cents) forecast for the full year. For the first fiscal quarter and the entire year, analysts anticipated EPS of $3.56 and $0.74, respectively.
In addition, TJX stated that it intends to buy back between $2 billion and $2.5 billion worth of stock during the entire fiscal year 2024.
“Fiscal 2024 is off to a good start, and we remain confident in our ability to increase our profitability this year and achieve our pretax profit margin goal of 10.6% by Fiscal 2025.” We are excited about the coming year and our plans to continue providing customers worldwide with ever-changing selections of great brands and fashions at excellent prices. Herrman continued, “Over the long term, I am confident that we are on track to become an increasingly profitable $60 billion or more company.”
The FQ1 and FY forecasts, according to Vital Knowledge analysts, were “a little bit soft” and “light.”
