TJX Companies' Q4 Highlights: 5% Top-Line Growth, Inline EPS, Solid Shareholder Distributions & More

TJX Companies TJX reported fourth-quarter FY23 sales growth of 5% year-on-year to $14.52 billion, beating the consensus of $14.06 billion.
The U.S. comparable store sales increased 4% versus last year, with Marmaxx store sales increasing 7% and HomeGoods declining 7%.
The gross profit margin for the quarter contracted 100 basis points to 26.1%. Selling, general and administrative expenses fell 0.9% to $2.5 billion.
EPS of $0.89 was in-line with the consensus estimate.
The company held $5.47 billion in cash and equivalents as of Jan. 28, 2023. The company generated $4.08 billion of operating cash flow in the year.
Total inventories as of Jan. 28, 2023, were $5.8 billion versus $6 billion at the FY22 end.
The company intends to increase the regular quarterly dividend on its common stock expected to be declared in March 2023 and payable in June 2023, to $0.3325 per share.
TJX expects to repurchase about $2 billion – $2.5 billion in fiscal 2024.
Outlook: TJX expects FY24 overall comparable store sales growth of 2% - 3%.
The company expects FY24 adjusted EPS of $3.29 - $3.41 against the consensus of $3.56.
For Q1, TJX expects overall comparable store sales to be up 2% to 3%. It expects EPS of $0.68 - $0.71, below the consensus of $0.74.
The company said it remains confident in improving profitability this year and reaching the pretax profit margin target of 10.6% by FY25.
Price Action: TJX shares are trading lower by 1.04% at $78.00 in premarket on the last check Wednesday.

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