US' TJX Companies' net sales soar 3% to $11.8 bn in Q1 FY23

Net income for Q1 FY24 stood at $891 million, while diluted earnings per share amounted to $0.76, marking a considerable increase of 55 per cent from $0.49 in Q1 FY23. Compared to the adjusted diluted earnings per share of $0.68 in the previous year's Q1, the Q1 FY24 earnings per share grew by 12 per cent.

The pretax profit margin for Q1 FY24 was 10.3 per cent, which was significantly higher than the company's projection and an increase from the 7.5 per cent pretax profit margin recorded in the first quarter of the previous fiscal, the company said in a media release.

The gross profit margin for the first quarter of FY24 was 28.9 per cent, marking a 1 percentage point increase from Q1 FY23. Meanwhile, selling, general and administrative costs represented 19.0 per cent of sales for Q1 FY24, marking a 0.6 percentage point increase from Q1 FY23. Net interest income also boosted the pretax profit margin by 0.5 percentage points versus the prior year.

“I am very pleased with our first quarter performance. Our pretax profit margin and earnings per share both significantly exceeded our plan and our 3 per cent comparable store sales increase was at the high end of our plan. Our comp sales growth was driven by an increase in overall customer traffic and a 5 per cent comp sales increase at Marmaxx, our largest division. HomeGoods’ comp sales were down following extraordinary growth during the pandemic. TJX Canada and TJX international both delivered comp sales growth and customer traffic increases. With our above-plan profit performance we are raising our full-year guidance for both pretax profit margin and earnings per share,” said Ernie Herrman, chief executive officer and president of the TJX Companies.

As of April 29, 2023, the company’s total inventories were $6.4 billion, down from $7 billion at the end of the first quarter of FY23, reflecting the company's effective inventory management strategies.

ALCHEMPro News Desk (DP)