US retailer TJX Companies' net sales climb 6% in H1 FY24

The net income for H1 FY24 stood at $1.9 billion, with diluted earnings per share (EPS) at $1.62, up by 37 per cent from $1.18 in H1 FY23. Compared to last year's first half adjusted EPS of $1.36, which excluded an $0.18 charge related to a write-down of the company's minority investment in Familia, the earnings were up 19 per cent, the TJX Companies said in a press release.

In the second quarter of fiscal 2024 (Q2 FY24), net sales reached $12.8 billion, up by 8 per cent versus Q2 FY23. Overall comparable store sales in this quarter increased by 6 per cent. Net income for Q2 FY24 was $1 billion, and diluted EPS were $0.85, reflecting a 23 per cent increase compared to $0.69 in Q2 FY23.

The company's pretax profit margin for Q2 FY24 was 10.4 per cent, well above the firm’s plan and 1.2 percentage points higher than last year's second-quarter pretax profit margin of 9.2 per cent. The gross profit margin for the same period was 30.2 per cent, a 2.6 percentage point increase versus Q2 FY23.

However, the selling, general and administrative costs as a percent of sales for Q2 FY24 were 20.1 per cent, reflecting a 1.7 percentage point increase compared to Q2 FY23.

“I am extremely pleased with our second quarter performance. Our comparable store sales increase of 6 per cent, pretax profit margin, and earnings per share all significantly exceeded our plans. Our overall comp sales growth was driven by customer traffic, which increased at every division. It was terrific to see Marmaxx, our largest division, drive an 8 per cent comp sales increase. Our overall apparel and accessories sales were very strong. Overall home sales significantly improved and returned to positive comp sales growth, with HomeGoods posting a 4 per cent comp sales increase. TJX Canada and TJX International also both delivered comp sales growth and customer traffic increases,” said Ernie Herrman, chief executive officer and president of the TJX Companies.

ALCHEMPro News Desk (DP)