TJX (parent company of T.J. Maxx) joined the small group of retailers who have been able to defend their margins amid rising inflation pressures. Pretax margins for Q1 were 7.5% (and 9.4% on an adjusted basis). The company believes it is well-positioned for the current environment, as inflation-pinched consumers gravitate more toward discounted merchandise.
Investors cheered the results, with the stock closing up (7.12%) amid a sea of red. 📈
The company noted the Russia/Ukraine war reduced revenue by ~$200 million and Covid-19 lockdowns in China exacerbated supply chain issues. For the fiscal fourth quarter, the company forecasted $0.76 – $0.84 adjusted EPS and a YoY revenue decline of 1% – 5.5%. The wider-than-usual guidance range reflects an “increasingly complex environment,” CEO Chuck Robbins says.
The stock is down 13% after hours, adding to its losses in the regular session.
Lowe’s lost 5.24% today, the Container Store Group gained 7.07% on news of EPS, and Tencent Holdings Ltd. dumped 6.97% at the close. 💰
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