TJX posts ‘very strong’ Q4 with growth across all brands — led by Home Goods

The TJX Companies ended the year on a strong note with comp sales growth across all its divisions and full-year sales that topped $50 billion — a record for the company.

The off-price giant reported net income of $1.4 billion, or $1.22 per share, for the quarter ended Feb. 3, compared with $1.0 billion, or $0.89 per share, in the year-ago period. Excluding an additional week in the quarter, TJX reported earnings per share of $1.12.

Net sales rose 13% to $16.411 billion, topping estimates of $16.202 billion (The prior-year’s sales included one fewer week.) Consolidated comparable store sales increased 5% during the quarter and for the full year, well above its original plans, the company said.

By division, fourth-quarter comparable sales at HomeGoods rose 7% and 5% at Marmaxx, which includes T.J. Maxx, Marshall’s and Sierra stores, which was more than expected. Comp sales rose 6% at TJX Canada and 3% at TJX International.

For the full year, TJX reported net sales were $54.2 billion, a record for the company and an increase of 9% over the previous year.

In a statement, CEO Ernie Herrman noted that the chain exceeded its expectations for both its top and bottom lines for the year.

“We saw comp sales growth at every division driven by customer transactions, which underscores our confidence in our ability to gain market share across all of our geographie,” he said. “We had a very strong finish to 2023 and start the new year in a position of strength with the first quarter off to a good start. Longer term, we are excited about the potential we see to strategically grow our business, capture additional market share, and increase the profitability of our company.”

Store Expansion

TJX expects capital expenditures for its current fiscal year to be in the range of $2 billion to $2.1 billion. On the earnings call, executive VP and CFO John Klinger said the company's U.S. plans include adding about 45 net new stores in Marmaxx, 40 stores at HomeGoods (including 17 HomeSense stores) and 26 Sierra stores this year. It plans to add 10 stores in Canada. 

"We continue to see opportunities for store growth around the world," Herrman told analysts on the call. "We believe we can grow our global store base by at least another 1,300-plus stores over the long term with just our existing banners in our current countries."

For the current quarter, TJX expects earnings per share of $0.84 to $0.86 per share, compared to analysts’ expectations of $0.82 to $0. 93 cents per share.

For the full year, net sales rose 9% to $54.2 billion, an increase of 9% the company expects earnings per share of $3.94 to $4.02, compared to estimates of $3.88 to $4.40 per share.

During the fiscal year ended February 3, 2024, TJX increased its store count by 119 stores overall to a total of 4,954 stores and increased square footage by 2% versus the prior year. The company’s banners include TJ Maxx, Marshalls, HomeGoods, Homesense and Sierra in the United States; HomeSense and Marshalls in Canada; TK Maxx and Homesense in Europe; and and TK Maxx in Australia. It also operate e-commerce sites for TJ Maxx, Marshalls, and Sierra in the U.S. and three sites for TK Maxx in Europe.