TJX beats by $0.12, beats on revs; guides Q3 EPS below consensus; raises FY19 EPS guidance, in-line
- Reports Q2 (Jul) GAAP earnings of $1.17 per share, $0.12 better than the S&P Capital IQ Consensus of $1.05; revenues rose 11.6% year/year to $9.33 bln vs the $8.99 bln S&P Capital IQ Consensus
- Consolidated comparable store sales increased 6% over the comparable period last year ending August 5, 2017
- For the second quarter of Fiscal 2019, the Co's consolidated pretax profit margin was 10.6%, a 0.1 percentage point decrease compared with the prior year's 10.7%
- Gross profit margin for Q2 of FY19 was 28.9%, up 0.4 percentage points versus the prior year
- This was primarily due to a favorable year-over-year comparison related to the co's inventory hedges
- Co issues downside guidance for Q3, sees GAAP EPS of $1.18-1.20 vs. $1.23 S&P Capital IQ Consensus
- This guidance assumes that foreign currency will negatively impact EPS growth by ~4% and that wage increases will negatively impact EPS growth by an additional 2%
- This EPS outlook is based upon estimated consolidated comparable store sales growth of 2% to 3% and Marmaxx comparable store sales growth of 3% to 4%
- Co issues raises guidance for FY19, sees GAAP EPS of $4.83-4.88 vs. $4.85 S&P Capital IQ Consensus, up from $4.75-4.83 prior guidance
- This guidance assumes that wage increases will negatively impact EPS growth by 2%. This EPS outlook is now based upon estimated comparable store sales growth of 3% to 4% on both a consolidated basis and at Marma