TJX Companies Reports Q3 Earnings of $0.76, Revenue Misses By $40M

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The company reported a GAAP earnings per share of $0.76, exceeding expectations by $0.05.

However, revenues of $11.78B fell short of the forecasted amount by $40M. He stated that the company saw “strong growth across all four businesses” and “accelerating trends” in its online business. He also noted that the company is well-positioned for the upcoming holiday season. The company has invested heavily in its digital capabilities over the past year, and these investments are already starting to pay off. Overall, although the revenue miss is a short-term setback, TJX ($NYSE:TJX) Companies seems to be on track to enjoy long-term success. The company has managed to maintain a strong position during the pandemic and is well-prepared to capitalize on the upcoming holiday season.

Earnings

TJX Companies recently reported their fourth quarter earnings of FY2023, as of January 31 2023. Total revenue was reported to be $14520.0M USD, while net income reached $1038.0M USD. This represents an impressive 4.8% increase in total revenue and a 10.4% increase in net income compared to the same time period last year.

Furthermore, TJX Companies’s total revenue in the last three years has grown from $10943.21M USD to $14520.0M USD. Despite this impressive growth in net revenue and income, their reported earning of $0.76 for the quarter still missed the expected mark by $40M.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Tjx Companies. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Tjx Companies. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Tjx Companies. More…

Key Ratios Snapshot

Some of the financial key ratios for Tjx Companies are shown below. More…

Market Price

The company’s stock opened at $78.7 and closed at $79.0, up by 0.9% from the previous closing price of 78.2. Despite the revenue miss, the stock price still rose as investors were encouraged by the growth in same-store sales and gross margin expansion. Live Quote…

Analysis

As a financial analysis platform, GoodWhale has taken a deep look into the financials of TJX Companies. According to our Star Chart, TJX Companies is classified as a ‘cow’, which traditionally refers to a company with a track record of paying out consistent and sustainable dividends. This would make TJX Companies of particular interest to shareholders who anticipate a steady return on investment through dividend payments. GoodWhale has also rated TJX Companies highly across various metrics. Our analysis reveals that TJX Companies is strong in asset, dividend, and profitability, and medium in growth. We have also assigned TJX Companies an impressive health score of 8/10, which reflects its solid cashflows and low debt-to-equity ratio. This suggests that even during difficult economic times, TJX Companies is capable of riding out any crisis without the risk of bankruptcy. More…

Peers

In the retail industry, there is intense competition between TJX Companies Inc and its competitors Ross Stores Inc, Destination Maternity Corp, and United Arrows Ltd. This is due to the fact that each company is vying for the same consumers. In order to attract and retain customers, each company must offer competitive prices, a wide variety of merchandise, and excellent customer service.

– Ross Stores Inc ($NASDAQ:ROST)

Ross Stores is an American chain of off-price department stores headquartered in Dublin, California, founded in 1957 by Morris Ross. The company operates 1,378 Ross Dress for Less locations and 122 dd’s Discounts locations in 37 states, the District of Columbia and Guam. Ross Stores Inc has a market cap of 29.23B as of 2022, a Return on Equity of 30.69%. Ross Stores is an American chain of off-price department stores headquartered in Dublin, California, founded in 1957 by Morris Ross. The company operates 1,378 Ross Dress for Less locations and 122 dd’s Discounts locations in 37 states, the District of Columbia and Guam. Ross Dress for Less offers first-quality, in-season, name brand and designer apparel, accessories, footwear and home fashions for the entire family at every day savings of 20% to 60% off department and specialty store regular prices. dd’s Discounts is designed to offer brand-name apparel, accessories, footwear and home fashions for the entire family at 20% to 70% off moderate department and discount store prices every day.

– Destination Maternity Corp ($OTCPK:DESTQ)

Destination Maternity Corporation is an international retailer of maternity apparel, selling its products under the Destination Maternity®, Motherhood Maternity®, A Pea in the Pod® and Destination Baby® brands. The Company also operates ecommerce websites, destinationmaternity.com in the United States, motherhood.com and apeainthepod.com. As of October 28, 2017, Destination Maternity operated 1,944 retail locations, including 512 stores in the United States, Puerto Rico and Canada, and 1,432 leased department locations. The Company’s retail locations are located in the United States, Puerto Rico, Canada and the United Kingdom.

– United Arrows Ltd ($TSE:7606)

United Arrows Ltd is a Japanese fashion retailer. The company was founded in 1989 and is headquartered in Tokyo, Japan. United Arrows Ltd has a market cap of 58.64B as of 2022, a Return on Equity of 9.39%. The company operates over 800 stores across Japan and also has a presence in Hong Kong, China, and Taiwan. United Arrows Ltd offers a wide range of products including men’s and women’s clothing, accessories, and beauty products. The company has a strong focus on quality and design, and its products are popular among Japanese consumers.

Summary

Investors in TJX Companies have reported a positive quarterly earnings report. The reported GAAP Earnings Per Share (EPS) of $0.76 beat analyst estimates by $0.05. Revenue of $11.78B, however, missed estimates by $40M.

This news has been met with a largely positive response from investors, as the better than expected EPS was seen as an indicator of the company’s sound financial health. It remains to be seen how this news will affect TJX Companies’ stock performance in the future.