The TJX Companies, Inc. reports above-plan Q2 FY22 sales and profit results

The TJX Companies, Inc. [TJX] the leading off-price apparel and home fashions retailer in the U.S. and worldwide, today announced sales and operating results for the second quarter ended July 31, 2021. Net sales for the second quarter of Fiscal 2022 were $12.1 billion, an increase of 81% versus the second quarter of Fiscal 2021 in which stores were closed for approximately 31% of the quarter due to the COVID-19 global pandemic (see table below). Net sales for the second quarter of Fiscal 2022 increased 23% versus the second quarter of Fiscal 2020. Overall open-only comp store sales (defined below) increased 20% compared to the second quarter of Fiscal 2020. Net income for the second quarter was $786 million. Second quarter diluted earnings per share were $.64, which includes a debt extinguishment charge (described below) of $.15 per share, versus $.62 per share in the second quarter of Fiscal 2020. The Company estimates that temporary store closures for approximately 3% of the second quarter negatively impacted earnings per share by about $.05 to $.07, based on the Company’s estimates of profit dollars on lost sales of approximately $300 million to $350 million 

For the first half of Fiscal 2022, net sales were $22.2 billion, an increase of 100% versus the first half of Fiscal 2021 in which stores were closed for approximately 41% of the first half of the year due to the COVID-19 global pandemic (see table below). Net sales for the first half of Fiscal 2022 increased 16% versus the first half of Fiscal 2020. Overall open-only comp store sales increased 18% compared to the first half of Fiscal 2020. Net income for the first half of Fiscal 2022 was $1.3 billion. For the first half of Fiscal 2022, diluted earnings per share were $1.08, which includes a second quarter debt extinguishment charge of $.15 per share. The Company estimates that temporary store closures for approximately 8% of the first half of Fiscal 2022 negatively impacted earnings per share by about $.26 to $.31, based on the Company’s estimates of profit dollars on lost sales of approximately $1.40 billion to $1.55 billion 

- Q2 FY22 overall open-only comp store sales increased 20% over Q2 FY20

- Q2 FY22 net sales were $12.1 billion, an increase of 23% compared to Q2 FY20

- Q2 FY22 total segment profit grew by $336 million to $1.5 billion, a 29% increase compared to Q2 FY20

- Q2 FY22 diluted earnings per share were $.64, which includes a debt extinguishment charge of $.15 per share, compared to earnings per share of $.62 in Q2 FY20

- The Company estimates that temporary store closures for approximately 3% of the second quarter, primarily stores in Canada, Europe, and Australia, negatively impacted Q2 FY22 sales by approximately $300 million to $350 million, pretax profit margin by an estimated 0.6 percentage points, and EPS by approximately $.05 to $.07 (see below)

- Returned $614 million to shareholders in the second quarter through share repurchases and dividends

- Increased range for expected full year FY22 share repurchases by $250 million to $1.25 billion to $1.50 billion

- Sales are very strong to start Q3 FY22, with overall open-only comp store sales up mid-teens over Q3 FY20