TJX Companies, Inc. TJX released bumper figures for the third quarter of fiscal 2022, with both top and bottom results beating Zacks’ consensus estimate. The revenues and sales have increased year by year. The company recorded strong performances in all of its divisions. In addition, it recorded encouraging sales in model stores open only in the clothing category.

Q3 in details

TJX Companies’ profits in the third quarter were 84 cents per share, compared to 71 cents reported in the same quarter last year. In the third quarter of fiscal 2020, the company’s profit was 68 cents per share. Zacks’ consensus estimate for Q3 FY2022 earnings was set at 81 cents per share.

Net sales reached $ 12,532 million, up 24% from the $ 10,117 million reported in the same quarter last year. Net sales for the quarter were up 20% from levels in the third quarter of fiscal 2020. The metric topped Zacks’ consensus estimate of $ 12,312.7 million.

The TJX Companies, Inc. Price, Consensus and EPS Surprise

The TJX Companies, Inc. price-consensus-eps-surprise-chart | Quote from TJX Companies, Inc.

Management said that due to temporary store closures amid the pandemic, the definition of makeup store sales was not applicable in the quarter under review. To provide a performance indicator for stores when they reopen, The TJX Companies has come up with a new temporary sales metric – sales of open model stores only. This includes stores that were originally classified as retail stores (at the start of fiscal 2021). This metric indicates an increase or decrease in store sales for the days they were operational in the third quarter of fiscal 2022 compared to the same days in fiscal 2020 before the pandemic.

Sales of model stores open only for the company increased 14% from levels in the third quarter of fiscal 2020. The metric increased by 11%, 34%, 8% and 10% for Marmaxx (US). United), HomeGoods (United States), TJX Canada and TJX International (Europe and Australia), respectively.

TJX Companies’ consolidated pre-tax profit margin was 11%, up 0.3 percentage point from the third quarter of fiscal 2020. The increase was due to strong sales and increased margin on the goods. However, escalating transportation costs and large investments to expand distribution capacity, increase incentives to pay as well as wage growth have been a downside for the measure. In addition, the net spending induced by the pandemic hurt the pre-tax margin by 0.5 percentage point.

Gross profit margin was 29.5%, up 0.7 percentage point from levels in the third quarter of fiscal 2020. Selling, general and administrative (SG&A) expenses, as a percentage of sales, were 18.3%, up 0.3 percentage points from the 2020 level.

Other financial updates

TJX Companies ended the quarter with cash and cash equivalents of $ 6,791.6 million, long-term debt of $ 3,353.9 million and equity of $ 6,444.8 million. For 39 weeks ended October 30, 2021, the Company provided operating cash flow of $ 1,946.9 million.

The company expects to declare a quarterly dividend in the fourth quarter of fiscal 2022. In the quarter under review, the company returned $ 1.1 billion to shareholders. Management repurchased and withdrawn 11.7 million shares for $ 800 million as of the date of the transaction, while paying $ 313 million in dividends to shareholders. It plans to repurchase nearly $ 1.75 to $ 2 billion of the company’s stock in fiscal 2022.

Total inventories as of October 30, 2021 were $ 6.6 billion. Management is optimistic about its ability to bring a new assortment of gifts to its online stores and websites during the holiday season.

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Shop and more updates

The company’s performance in the third quarter of fiscal 2022 was affected by the temporary closure of a few Australian stores due to a pandemic, which were closed for almost 57% of the quarter. In total, its stores were closed for almost 1% of the quarter. Management expects such closings to have caused a loss of sales of $ 30-40 million in the third quarter of fiscal 2022. The company expects quarterly earnings per share to have been negatively impacted by one cent, thanks to such store closures. That being said, he currently has no pandemic-induced store closings.

Outlook

At the start of the fourth quarter of fiscal 2022, TJX Companies is seeing overall growth in model store sales open only in mid-teens from levels in the fourth quarter of fiscal 2020.

Zacks Rank # 3 (Hold) company shares have risen 1.7% so far this year compared to industry growth of 24%.

Upcoming Industry Earnings Publications

Dollar Tree, Inc. DLTR is expected to report its results on November 23, 2021. The company is expected to record a decline in results when it releases its third quarter of fiscal 2021 results. Zacks’ consensus estimate for quarterly earnings has remained unchanged over the course of the year. of the past 30 days at 95 cents a share, projecting a 31.7% drop from the number released last year.

Dollar Tree’s revenue is expected to increase year on year. Zacks’ consensus estimate for quarterly revenue is set at $ 6,423 million, suggesting growth of nearly 4% from the figure reported in the previous year’s quarter. DLTR currently carries a Zacks Rank # 3 (Hold). You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.

Burlington Stores, Inc. BURL is expected to report its results on November 23, 2021. The company is expected to post a slight increase in results when it releases its third quarter of fiscal 2021 results. Although the consensus mark for quarterly earnings has declined by a penny over the past seven days to $ 1.26 per share, it forecasts a significant increase from the 29 cents reported in the last year’s quarter.

Burlington store sales are also expected to increase year over year. Zacks’ consensus estimate for quarterly revenue is set at $ 2,292 million, which suggests a 37.2% increase from the figure reported in the previous year’s quarter. BURL currently has a Zacks Rank # 4 (Sell).

Societe Generale Dollar DG is expected to release its results on December 2, 2021. The company is expected to record a decline in results when it releases its results for the third quarter of fiscal 2021. Zacks’ consensus estimate for quarterly earnings is unchanged over the course of the year. of the past 30 days at $ 2.02 per share, projecting a 12.6% decline from the number reported last year.

Dollar General’s revenue is expected to increase year on year. The consensus mark for quarterly revenue is set at $ 8,488 million, which suggests a 3.5% increase from the figure reported in the previous year’s quarter. DG currently wears a Zacks Rank # 4.

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