FRAMINGHAM, Mass. - The TJX Companies, Inc. (NYSE:TJX) reported a robust first quarter with earnings outpacing analyst expectations, although its second-quarter guidance fell short of Wall Street estimates, sending the stock down slightly.
The leading off-price apparel and home fashions retailer announced a 22% increase in adjusted earnings per share (EPS) and a 6% rise in revenue compared to the same period last year.
For the first quarter ended May 4, 2024, TJX reported adjusted EPS of $0.93, which was $0.05 higher than the analyst estimate of $0.88. Revenue reached $12.48 billion, just shy of the consensus estimate of $12.49 billion.
The company's pretax profit margin expanded to 11.1%, up 0.8 percentage points from the previous year, reflecting strong operational performance. TJX also returned $886 million to shareholders through share repurchases and dividends during the quarter.
CEO Ernie Herrman expressed satisfaction with the company's performance, highlighting a 3% increase in consolidated comparable store sales, driven entirely by an uptick in customer transactions. "We saw comp sales growth at every division entirely driven by customer transactions, which underscores the strength of our value proposition," Herrman stated.
Despite the positive results, TJX's stock experienced a modest decline of 0.7% following the earnings release, influenced by a softer outlook for the upcoming quarter. For the second quarter of 2025, TJX anticipates an EPS range of $0.88 to $0.90, below the analyst consensus of $0.94.
However, the company has 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, Herrman remains optimistic, citing a strong start to the second quarter and numerous opportunities for growth throughout the year.
"Longer term, we are excited about the potential we see to drive customer transactions and sales, capture additional market share, and increase the profitability of TJX," he added.
The company's focus on delivering value and a treasure-hunt shopping experience continues to resonate with consumers, positioning TJX favorably in the competitive retail landscape. Despite the cautious near-term outlook, TJX's ability to attract customers and effectively manage profitability suggests a continued potential for market share gains.
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