TJX Cos. (TJX) reported sturdy fiscal fourth-quarter earnings that met views early Wednesday, with income progress accelerating. The off-price retailer guided decrease. However TJX additionally introduced a dividend hike and inventory buyback plan. Shares, already at document highs, edged larger earlier than the open.
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Massachusetts-based TJX sells off-price attire and residential items by way of TJ Maxx and different chains corresponding to Marshalls, HomeGoods and HomeSense. TJX competes in opposition to Ross Shops (ROST) and Burlington Shops (BURL) within the off-price attire phase.
TJX Earnings
TJX reported earnings of $1.12 a share, up 26% vs. a 12 months earlier, choosing up from Q3’s 20%. Income climbed 13% to $16.41 billion, the third straight quarter of slowly accelerating progress. Consolidated same-store gross sales rose 5%.
Analysts anticipated TJX earnings of $1.12 a share on income of $16.202 billion, with same-store gross sales up 4.3%.
TJX sees Q1 EPS of 84-86 cents with comps up 2%-3%. That is vs. analyst estimates of 86 cents and three.8%, respectively. For fiscal 2025, the discounter expects earnings of $3.94-4.02 and same-store gross sales of two%-3%. Wall Avenue had forecast per-share revenue of $4.11 with comps progress of three.6%.
Dividend, Buyback Hike
TJX raised its quarterly dividend to 37.5 cents a share, up 13% from the prior 33.25 cents.
The retailer additionally plans to purchase $2 billion-$2.5 billion of its inventory, changing a previous repurchase authorization with $1 billion.
TJX Inventory
TJX inventory edged up 0.3% in premarket commerce. On Tuesday, shares rose 1.3% to 100.52, hitting a brand new document excessive. TJX is drastically prolonged from any purchase level.
Ross Shops inventory, additionally at document highs, tilted larger early Wednesday.
Burlington Shops inventory rose modestly earlier than Wednesday’s open. Shares have rebounded from their 10-week line and cleared a consolidation, providing a shopping for alternative. Each Ross and Burlington are set to report subsequent week.
Please observe Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for inventory market updates and extra.
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