TJX Companies Reports 3% Sales Decline In Q3; Picks New CFO

TJX Companies Inc TJX reported a third-quarter FY23 sales decline of 3% year-on-year to $12.17 billion, missing the consensus of $12.30 billion.
The U.S. comparable store sales decreased 2% versus last year, with Marmaxx store sales increasing 3% and HomeGoods declining 16%.
The gross profit margin for the quarter contracted 40 basis points to 29.1%. Selling, general and administrative expenses fell 4.9% to $2.2 billion.
The company held $3.4 billion in cash and equivalents as of October 29, 2022. The company generated $1.1 billion of operating cash flow in the quarter.
Total inventories at the quarter end were $8.3 billion versus $6.6 billion at the 3Q22 end.
Adjusted EPS of $0.86 beat the analyst consensus of $0.80.
TJX expects to repurchase about $2.25 billion – $2.50 billion in fiscal 2023.
CFO Appointment: TJX has promoted John Klinger to EVP and CFO, effective January 29, 2023, the beginning of its fiscal year. He will continue to report to Scott Goldenberg, who has been CFO since 2012. Goldenberg will continue as Senior Executive Vice President, Finance.
Outlook: TJX expects FY23 U.S. comparable store sales to decline by 1% to 2% (prior view decrease of 2% - 3%).
The company expects FY23 adjusted EPS of $3.07 - $3.11 (prior view $3.05 - $3.13) against the consensus of $3.10.
For Q4, TJX expects U.S. comparable store sales to be flat – up 1%. It expects EPS of $0.85 - $0.89, below the consensus of $0.94.
Price Action: TJX shares are trading lower by 0.03% at $75.10 on the last check Wednesday.
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