US' The TJX Companies posts sales of $11.8 billion in Q2 FY23

Net income for the second quarter of fiscal 2023 was $809 million, and diluted earnings per share were $.69 versus $.64 per share in the second quarter of fiscal 2022, which included a debt extinguishment charge of $.15 per share.

For the first half of fiscal 2023, net sales were $23.2 billion, an increase of 5 per cent versus the first half of fiscal 2022. First half fiscal 2023 US comp store sales decreased 2 per cent versus a 19 per cent increase in US open-only comp store sales for the first half of fiscal 2022. Net income for the first half of fiscal 2023 was $1.4 billion. For the first half of fiscal 2023, diluted earnings per share were $1.18 versus $1.08 in the first half of fiscal 2022, the company said in a press release.

“I want to start by recognizing the dedication and commitment of our talented Associates who bring outstanding values on branded, quality merchandise to our customers every day. As to our results, I am very pleased that our second quarter pretax profit margin exceeded our plan and earnings per share were at the high end of our guidance. We believe our strong profitability speaks to the strength and flexibility of our off-price business model, sharp execution of our teams, and expense discipline. As to the top-line, US comp sales for the second quarter came in lighter than we expected as we believe historically high inflation impacted consumer discretionary spending,” Ernie Herrman, chief executive officer and president of The TJX Companies, Inc., said.

“While we saw more softness in our home categories, we were very pleased that comp sales in our overall apparel business at Marmaxx were slightly positive every month of the quarter. In addition, it was good to see the improved profitability of our international divisions. Looking ahead, while we are not immune to macro factors, we are convinced that the flexibility of our off-price business model and the value proposition we offer to a wide range of consumers will continue to serve us well, as we have seen throughout our 46-year history. We see a marketplace flush with off-price buying opportunities for branded, high quality product. We are excited about our many initiatives to drive customer traffic and sales for the fall and holiday selling season, and will be emphasizing our value leadership in our marketing. We remain focused on our long-term vision to become an increasingly profitable, $60-billion-plus revenue company,” explained Herrman.

For the third quarter of fiscal 2023, the company expects pretax profit margin to be 10.1 per cent to 10.4 per cent and diluted earnings per share to be $.77 to $.81. For the third quarter of fiscal 2023, the company is planning US comparable store sales to decrease 3 per cent to 5 per cent versus a 16 per cent US open-only comp store sales increase in the third quarter of fiscal 2022.

For the full year fiscal 2023, the company is increasing its outlook for pretax profit margin. The company now expects pretax profit margin to be 9.3 per cent to 9.5 per cent and adjusted pretax profit margin to be 9.7 per cent to 9.9 per cent, versus its previous guidance for pretax profit margin of 9.2 per cent to 9.4 per cent and adjusted pretax profit margin of 9.6 per cent to 9.8 per cent.

Fibre2Fashion News Desk (RR)