Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

The TJX Companies, Inc. (TJX - Analyst Report) adjusted earnings of 82 cents per share in the fourth quarter of fiscal 2013 was ahead of the Zacks Consensus Estimate by a penny. However, the reported earnings increased 32% from the year-ago quarter.

The earnings upside was fueled by higher consumer traffic on the back of fresh stocks in the stores and solid comparable-store sales growth for consecutive months.

Quarterly Details

Total net sales of this leading off-price retailer grew 15.0% year over year to $7.7 billion in the reported quarter, driven by solid growth in consolidated comparable store sales. Net sales beat the Zacks Consensus Estimate of $7.6 billion.

TJX Companies' consolidated comparable store sales excluding the extra week in 2013 increased 4.0% in the quarter, driven by same-store sales growth of 4% at Marmaxx, 5% at Home Goods, 7% at TJX Europe and 3% at TJX Canada.

Comparable store sales growth exceeded management’s expectations on the back of strong performance in all the stores in the U.S., Canada and Europe. Further, well-chosen stocks at the stores improved customer traffic during the period.

TJX Companies’ gross margin expanded 1.4 percentage points from the prior-year quarter to 28.6%.  The margin expansion was mostly driven by increased merchandise sales margin.

Selling, general and administrative costs as a percentage of sales increased 0.2 percentage point year on year to 16.0% in the third quarter, driven by expense leverage.

Share Repurchase

During the fourth quarter, the company spent a total of $350 million to repurchase TJX stock, retiring 8.1 million shares.

Outlook

For the fiscal 2014, the company expects diluted EPS to be in the range of $2.66 to $2.78. The Zacks Consensus Estimate for fiscal 2014 is $2.81, higher than the company’s guidance range.

For the first quarter of 2014, the company expects diluted earnings per share to be in the range of 59 cents to 62 cents

Saks currently holds a Zacks Rank #2 (Buy). Other stocks in the retail and wholesale sector worth considering include New York & Company Inc. (NWY - Snapshot Report) with a Zacks Rank #2 (Buy), Abercrombie & Fitch Company (ANF - Analyst Report) with a Zacks Rank #2 (Buy) and Gap Inc. (GPS - Analyst Report) also with a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%