Upbeat first-quarter results
The stock price of leading off-price retailer TJX Companies (TJX) was up 1.8% as of 10:53 AM EST today. The company announced its results for the first quarter of fiscal 2019, which ended on May 5, 2018. TJX Companies’ net sales of $8.69 billion beat analysts’ expectation of $8.47 billion. The company’s net sales grew by an impressive 11.6% year-over-year. This growth rate was quite an improvement compared to the 3.2% growth rate in the first quarter of fiscal 2018. Higher consumer traffic boosted the company’s top-line growth. TJX Companies’ off-price model continues to win customers through attractive deals.
The company’s same-store sales grew 3.0% in the first quarter of fiscal 2019, compared to 1.0% in the first quarter of fiscal 2018.
TJX Companies’ EPS (earnings per share) came in at $1.13 in the first quarter of fiscal 2019, compared to $0.82 in the first quarter of fiscal 2018. Excluding the impact of a $0.17 benefit resulting from a lower US corporate tax rate, the company’s adjusted EPS were $0.96. Analysts were expecting adjusted EPS of $1.02.
Following the strong results, the company expects its adjusted EPS for fiscal 2019[1. Fiscal 2019 ends on February 2, 2019] in the range of $4.04–$4.10, compared to the previous guidance range of $4.00–$4.08. This guidance range excludes the favorable impact of the lower tax rate.
The company continues to forecast its same-store sales growth in the range of 1%–2% for fiscal 2019.
TJX Companies and other off-price retailers like Ross Stores (ROST) have been stealing away the market share of major department stores by attracting consumers with their deep discounts. In its fiscal first quarter of 2018, which ended on May 5, Macy’s (M) reported 3.6% sales growth while JCPenney’s (JCP) revenue (comprising retail sales and credit income) declined 4.1%.