TJX Companies Q1: 3% Sales Growth, Overall Comps Up 3%, Increasing Customer Traffic & More

TJX Companies TJX reported first-quarter FY24 sales growth of 3% year-on-year to $11.78 billion, missing the analyst consensus estimate of $11.82 billion.
Overall comp store sales increased 3%, at the high end of the company's plan, driven by increased customer traffic.
The gross profit margin for the quarter expanded 100 basis points to 28.9%. Selling, general and administrative expenses rose 6.9% to $2.2 billion.
EPS of $0.76 beat the consensus estimate of $0.71.
The company held $5 billion in cash and equivalents as of April 29, 2023. The company generated $745 million of operating cash flow in the quarter.
Total inventories as of April 29, 2023, were $6.4 billion versus $7 billion last year.
The company returned $841 million to shareholders in Q1.
TJX continues to expect to repurchase about $2 billion – $2.5 billion in fiscal 2024.
Outlook: TJX continues to plan FY24 overall comparable store sales growth of 2%-3%.
The company expects FY24 adjusted EPS of $3.39-$3.48 (prior view $3.29-$3.41) against the consensus of $3.55.
For Q2, TJX expects overall comparable store sales to be up 2%-3%. It expects EPS of $0.72 - $0.75, below the consensus of $0.79.
Price Action: TJX shares are trading higher by 0.43% at $78.56 in premarket on the last check Wednesday.

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