The TJX Companies, Inc. (NYSE: TJX) reported a marked increase in fourth-quarter sales, aided by impressive comparable store performance during the holiday season. As a result, earnings climbed 19% and topped expectations. The company also hiked its quarterly dividend, as widely expected. The stock rose about 5% early Wednesday, following the announcement.
The apparel retailer reported net income of $984.79 million or $0.81 per share for the January-Quarter, up from last year’s profit of $841.54 million or $0.68 per share. The bottom line came in above Wall Street’s prediction and the management’s guidance.
Driving the earnings growth, net sales climbed to $12.21 billion from $11.13 billion in the fourth quarter of 2019. Analysts had forecast slower growth.
Comps up 6%
Total comparable store sales were up 6% year-over-year, reflecting the strong growth across all business segments.
“Our exciting brands and gift-giving assortments at great values, supported by our marketing, attracted customers around the globe during the holiday season and beyond. Fourth-quarter earnings per share of $.81 were also well above our guidance,” said CEO Ernie Herrman.
Outook
For fiscal 2021, the management expects earnings per share to be between $2.77 and $2.83, representing a 4-6% annual growth. It is looking for full-year comparable-store sales growth of 2-3%. In the first quarter of 2021, earnings are expected to be in the range of $.59 per share to $.60 per share, which reflects a 2-3% increase in comparable-store sales.
Dividend Hike
The company also announced plans to hike quarterly dividend by 13% to $0.26 per share – which will be declared in March for payment in June 2020 – and to repurchase $1.75-$2.25 billion of its stock in the current fiscal year. TJX ended the fourth quarter with a total of 4,529 stores, which is up 5% from the same period of last year.
TJX Companies’ shares gained during Wednesday’s pre-market trading session, after closing the last session lower. The stock has risen 15% in the past twelve months.
Listen to on-demand earnings calls and hear how management responds to analysts’ questions
Most Popular
Will the pandemic help or hurt Target (TGT)?
As the coronavirus pandemic rages on, major retailers continue to experience huge demand for food and essential items both in their stores and online. Target Corporation (NYSE: TGT) is one
GameStop (GME) swings to profit in Q4, beats estimates
GameStop Corp. (NYSE: GME) swung to a profit in the fourth quarter of 2019 from a loss last year, helped by lower costs and expenses despite a 28% dip in
Is Skechers’ global footprint strong enough to tide over present crisis?
Footwear maker Skechers USA, Inc. (NYSE: SKX) lost considerable market value in recent weeks and under-performed the industry, amid growing fears that a recession is imminent. The crisis has left