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US’ TJX Companies’ net income climbs to $3.5 bn in FY23

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The TJX Companies, a leading off-price apparel and home fashions retailer in the US and worldwide, has reported net income of $3.5 billion in fiscal 2023 (FY23), compared to $3.28 billion in FY22. The company posted net sales of $49.9 billion, representing a 3 per cent increase compared to FY22. Diluted earnings per share increased by 10 per cent to $2.97 compared to the previous year.

In FY23, US comp store sales were flat, versus a 17 per cent US open-only comparable store sales increase last year.

The TJX Companies, a leading off-price apparel and home fashions retailer, has reported net income of $3.5 billion in fiscal 2023, compared to $3.28 billion in FY22. The company posted net sales of $49.9 billion, representing a 3 per cent increase compared to FY22. Diluted earnings per share increased by 10 per cent to $2.97 compared to the previous year.

In addition, pretax profit margin for FY23 was 9.3 per cent, an increase of 0.2 percentage points compared to the previous year. The adjusted pretax profit margin was 9.7 per cent, the company said in a press release.

The company’s HomeGoods (US) sales in FY23 declined by 8 per cent year-on-year (YoY), totalling $8,264 million, while the Marmaxx (US) sales increased by 4 per cent YoY to $30,545 million.

Meanwhile, TJX Canada saw a 13 per cent increase in sales in FY23, totalling $4,912 million, and TJX International (Europe and Australia) posted $6,215 million in sales, an 8 per cent increase from the previous year. On a constant currency basis, TJX Canada and TJX International saw growth of 18 per cent and 22 per cent, respectively.

Total inventories as of January 28, 2023, were $5.8 billion, compared with $6 billion at the end of Fiscal 2022.

For the fourth quarter (Q4) of FY23, net sales were $14.5 billion, a 5 per cent increase compared to the fourth quarter of fiscal 2022. The TJX Companies’ net income for Q4 FY23 was $1 billion, while diluted earnings per share increased by 14 per cent to $0.89 compared to the previous year.

In Q4 FY23, US comparable store sales increased 4 per cent, well above the company’s plan and versus a 13 per cent US open-only comparable store sales increase last year.

Sales of HomeGoods (US) saw a decline of 4 per cent YoY, totalling $2,424 million in Q4 FY23, while Marmaxx (US) sales were up 8 per cent YoY to $8,983 million.

TJX Canada posted $1,297 million in sales, a 3 per cent increase from the previous year, and TJX International (Europe & Australia) achieved $1,816 million in sales, a 1 per cent increase from the previous year. On a constant currency basis, TJX Canada and TJX International reported sales growth of 10 per cent and 11 per cent, respectively.

Looking ahead, the company expects overall comparable store sales to increase by 2 per cent to 3 per cent in Q1 FY24, while diluted earnings per share are projected to be in the range of $0.68 to $.71.

For FY24, ending February 3, 2024, the group is planning overall comparable store sales to be up 2 per cent to 3 per cent. The company also expects pretax profit margins to be in the range of 10.1 per cent to 10.3 per cent for FY24, and diluted earnings per share to be in the range of $3.39 to $3.51.

“During the year, our apparel businesses, including accessories, across the company were strong. At our international divisions, we saw total sales increases and improved profitability for the year. Fiscal 2024 is off to a strong start and we remain confident in improving our profitability this year and reaching our pretax profit margin target of 10.6 per cent by fiscal 2025. We are energised for the year ahead and our plans to keep bringing customers around the globe ever-changing selections of great fashions and brands at excellent values. Longer term, I am confident that we are on track to becoming an increasingly profitable $60 billion-plus company,” said Ernie Herrman, chief executive officer and president of the TJX Companies.

Fibre2Fashion News Desk (DP)

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