TJX Cos.’ stock (TJX, -0.51%) showed a significant rise of 3.8% in premarket trade on Wednesday, following the release of their impressive second-quarter results and an upward revision in their guidance. The discount retailer, headquartered in Framingham, Mass., reported net income of $989 million, or 85 cents per share, representing a substantial increase from $810 million, or 69 cents per share, in the same period last year.
TJX also recorded a rise in sales, reaching $12.758 billion compared to $11.843 billion last year, surpassing the $12.450 billion FactSet consensus. Additionally, same-store sales experienced a remarkable 6% growth surpassing the FactSet consensus of 2.9%. CEO Ernie Herrman expressed delight in these results, mentioning that they outperformed the company’s own expectations.
Herrman highlighted the strong performance of their overall apparel and accessories sales, which showed significant growth. Furthermore, their home sales demonstrated a tremendous improvement and returned to positive comp sales growth, with HomeGoods witnessing a remarkable 4% increase in comp sales. TJX Canada and TJX International also contributed to these positive results by delivering comp sales growth and experiencing an increase in customer traffic.
As a result of their stellar performance, the company has revised its guidance upwards. TJX now anticipates full-year same-store sales to rise between 3% to 4%, with FactSet estimating a 3% growth. Moreover, they expect full-year earnings per share (EPS) to range from $3.66 to $3.72, whereas FactSet estimates $3.59.
In terms of year-to-date stock performance, TJX has gained an impressive 8%, considerably higher than the S&P 500’s (SPX, -1.16%) growth of 16%.
