Summary
TJX Companies Inc. reported a strong second quarter for fiscal year 2019, with net sales increasing by 12% to $9.3 billion compared to the prior year period. This growth was driven by a 6% increase in consolidated comparable store sales, largely attributed to higher customer traffic, and a 5% contribution from new store openings. Diluted earnings per share (EPS) saw a significant rise to $1.17, up from $0.85 in the same quarter last year. This improvement was bolstered by a lower effective income tax rate due to the Tax Cuts and Jobs Act of 2017, which provided an estimated $0.18 benefit to EPS. The company also returned substantial capital to shareholders through $844 million in share repurchases and dividends during the quarter. Operationally, the company managed its cost of sales effectively, with the ratio decreasing slightly, while SG&A expenses saw a modest increase due to restructuring costs and wage increases. Inventory management appears robust, with a 5% increase in average per-store inventories compared to a decrease in the prior year. All major segments, including Marmaxx, HomeGoods, TJX Canada, and TJX International, demonstrated sales growth, with TJX Canada and TJX International showing particularly strong segment profit margin improvements. The company maintains a solid liquidity position with $2.9 billion in cash and cash equivalents.
Financial Highlights
48 data points| Revenue | $9.33B |
| Cost of Revenue | $6.64B |
| Gross Profit | $2.70B |
| SG&A Expenses | $1.70B |
| Operating Income | $1.16B |
| Net Income | $739.63M |
| EPS (Basic) | $0.59 |
| EPS (Diluted) | $0.58 |
| Shares Outstanding (Basic) | 1.25B |
| Shares Outstanding (Diluted) | 1.27B |
Key Highlights
- 1Net sales increased by 12% to $9.3 billion for the second quarter of fiscal 2019.
- 2Consolidated comparable store sales increased by 6%, driven by customer traffic.
- 3Diluted earnings per share (EPS) rose to $1.17 from $0.85 in the prior year's second quarter.
- 4The effective income tax rate decreased significantly due to the Tax Cuts and Jobs Act of 2017.
- 5The company returned $844 million to shareholders via share repurchases and dividends during the quarter.
- 6Inventory levels increased 5% year-over-year, reversing a prior year decline.
- 7Strong sales growth across all major segments: Marmaxx, HomeGoods, TJX Canada, and TJX International.