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Yahoo Finance Plus T.J. Maxx Owner Falls On Q2 Miss as Virus Keeps Buyers Off Stores
By Dhirendra Tripathi
Investing.com – Stock of T.J. Maxx owner TJX Companies (NYSE:TJX) plunged 6.2% Wednesday as the resurgent virus kept customers away from the retailer’s stores.
Fourth quarter net sales rose 27% to near $14 billion but were behind estimates. Delta and Omicron variants of the virus kept stores shut at different times during the fourth quarter in different geographies TJX operates in, although the company said fourth-quarter sales were trending higher before the surge in Omicron cases.
Net income of the HomeGoods owner nearly tripled to 78 cents per share but still fell behind estimates. Margins fell due to investments in expanding distribution capacity and wage increases at the bricks-and-mortar retailer.
The company will pay 13% more in quarterly dividend in June, it said. It also plans to buy back shares worth $3 billion.
For the current year, the company is targeting an increase of 3-4% in U.S. comparable store sales. The company did not provide a forecast for diluted earnings per share guidance, blaming “the current uncertainty around how long elevated expense pressures may persist.”
Current quarter U.S. comparable store sales are expected to be up 1-3%. Adjusted EPS is seen between 58 cents and 61 cents. The company said profitability should improve when the macro environment normalizes even as freight and wage cost pressures remain elevated.
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