(Reuters) -TJ Maxx parent TJX Cos surpassed market expectations for fourth-quarter sales on Wednesday as budget-conscious shoppers flocked to the off-price retailer’s stores in search of holiday deals on apparel, cosmetics and home goods.
It also announced a share buyback plan of up to $2.5 billion in fiscal 2025.
With interest rates still high, discount retailers such as TJX and Ross Stores will shine in an environment of cautious consumer spending, helping them take market share from department stores like Macy’s and Nordstrom, analysts have said.
Still, TJX forecast fiscal 2025 comparable sales growth of 2% to 3%, below expectations for a 3.72% rise. It expects diluted earnings per share of $3.94 to $4.02, compared with estimates of $4.11.
Net sales for TJX’s core Marmaxx segment in the U.S. grew 5% in the quarter, driven by demand for cosmetics and skincare products. Its HomeGoods segment rose 7%.
“We saw comp sales growth at every division, driven by customer transactions, which underscores our confidence in our ability to gain market share across all of our geographies,” CEO Ernie Herrman said.
Shares of the company see-sawed in premarket trading.
Overall comparable store sales rose 5%, higher than analysts’ expectations of 4.15%, indicating holiday demand remained robust, aided by a healthy inventory.
The company posted net sales of $16.41 billion for the three months to Feb. 3, compared with analysts’ average estimate of $16.21 billion, according to LSEG data. Its quarter earnings per share of $1.22 came in above estimates of $1.12.
TJX also intends to raise its quarterly dividend in April by 13% to 375 cents per share.
(Reporting by Savyata Mishra and Anuja Bharat Mistry in Bengaluru; Editing by Devika Syamnath)
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