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TJX shares edge lower as Q4 guidance falls short of expectations

Published 20/11/2024, 14:16
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TJX
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Investing.com -- TJX Companies, Inc. reported better-than-expected third-quarter results on Wednesday, but shares slipped 0.89% as fourth-quarter guidance came in below analyst estimates.

The off-price retailer posted Q3 earnings per share of $1.14, surpassing the consensus forecast of $1.09. Revenue rose 6% year-over-year to $14.1 billion, also beating expectations of $13.95 billion. Comparable store sales increased 3%, driven entirely by higher customer transactions.

"I am very pleased with our third quarter results and the strong execution of our off-price business fundamentals by our teams," said CEO Ernie Herrman in a statement.

However, TJX (NYSE:TJX)'s Q4 EPS guidance of $1.12-$1.14 fell short of the $1.18 analysts were projecting. The company cited an expected reversal of Q3 benefits from expense timing.

For the full fiscal year 2025, TJX raised its outlook, now expecting pretax profit margin of 11.3% and EPS of $4.15-$4.17. It maintained its forecast for 3% comparable sales growth.

The company returned $997 million to shareholders in Q3 through share repurchases and dividends. It also completed investments in joint ventures in Mexico and the Middle East during the quarter.

TJX operates over 5,000 stores globally under banners, including T.J. Maxx, Marshalls and HomeGoods. The company said it plans to enter Spain with its TK Maxx brand in early 2026 as it continues international expansion.

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