TJX Companies Inc. shares fell after Year-End Report Dropped the Ball

NEWARK, Del. - March 11, 2022 - PRLog -- Despite producing record open only comparable sales growth in the United States, which exceeded pre-pandemic levels by 13% in Q4 and 17% in FY22, the company's earnings and revenue fell short of analyst's expectations. TJX is one of America's top off-price clothing and home furnishing companies, including T.J. Maxx, Marshalls, HomeGoods and Homesense which are all located in the United States. Canada, Europe and Australia are three of the most populous countries in the world. The company also intends to increase its quarterly common dividends by 13% to $0.295 per share, as well as raise its share buyback authorization in the range of $2.25 billion to $2.50 billion during FY23.

TJX's Q4 net sales of $13.85 billion were up 27% year over year but they fell short of analyst's expectations of $14.25 billion. Similarly, the company's quarterly EPS of $0.78 increased by 189% compared to Q4 FY21 but fell 13 cents short of analyst's expectations. Full-year fiscal 2022 net sales increased by 51% to $48.55 billion, with a diluted EPS of $2.70, a significant increase above $0.07 in FY21.

Although the performance of the company did not meet the analyst expectations, when compared against the past few results, the outcome is still better. "Fourth quarter revenues were heading higher before the spikes in Omicron," CEO and President Ernie Herrman stated, pleased with the company's success. Our consumers responded to our fantastic brands, excellent deals and inspirational treasure hunt buying experience throughout the Christmas selling season and throughout the year."

TJX expects diluted earnings in the range of $0.58 per share to $0.61 per share in Q1 FY23, based on the excellent quarterly performance and ongoing business momentum, while the consensus is $0.60 per share. Furthermore, comparable sales in the United States for the first quarter are predicted to increase from 1% to 3% above the Q1 FY22 number.

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