The TJX Companies, Inc. Reports Very Strong Q3 FY22 Sales And EPS Results; Q3 FY22 Overall.
Highlights:
* Open-Only Comp Store Sales Increased 14% Versus Q3 FY20 And Earnings Per Share Increased 24% Versus Q3 FY20
* Q3 FY22 overall open-only comp store sales increased 14% over Q3 FY20
* Q3 FY22 marks the third consecutive quarter that overall open-only comp store sales increased mid-teens or better
* Q3 FY22 net sales were $12.5 billion, an increase of 20% compared to Q3 FY20
* Q3 FY22 total segment profit grew to $1.5 billion, an increase of $285 million, or 23%, compared to Q3 FY20
* Q3 FY22 diluted earnings per share were $.84, a 24% increase compared to earnings per share of $.68 in Q3 FY20
* Returned $1.1 billion to shareholders in the third quarter through share repurchases and dividends
* Increased range for expected full year FY22 share repurchases by $500 million to $1.75 billion to $2.0 billion
* Sales are very strong to start Q4 FY22, with overall open-only comp store sales up mid-teens over Q4 FY20
FRAMINGHAM, Mass - The TJX Companies, Inc. (NYSE: TJX), the leading off-price apparel and home fashions retailer in the U.S. and worldwide, today announced sales and operating results for the third quarter ended October 30, 2021. Net sales for the third quarter of Fiscal 2022 were $12.5 billion, an increase of 24% versus the third quarter of Fiscal 2021. Net sales for the third quarter of Fiscal 2022 increased 20% versus the third quarter of Fiscal 2020. Overall open-only comp store sales (defined below) increased 14% over a 4% increase in the third quarter of Fiscal 2020. Net income for the third quarter was $1.0 billion and diluted earnings per share were $.84, a 24% increase over $.68 per share in the third quarter of Fiscal 2020.
For the first nine months of Fiscal 2022, net sales were $34.7 billion, an increase of 64% versus the first nine months of Fiscal 2021. Stores were closed for approximately 27% of the first nine months of Fiscal 2021 due to the COVID-19 global pandemic (see table below). Net sales for the first nine months of Fiscal 2022 increased 18% versus the first nine months of Fiscal 2020. Overall open-only comp store sales increased 17% compared to the first nine months of Fiscal 2020. Net income for the first nine months of Fiscal 2022 was $2.3 billion. For the first nine months of Fiscal 2022, diluted earnings per share were $1.92, which includes a second quarter debt extinguishment charge of $.15 per share. The Company estimates that temporary store closures for approximately 6% of the first nine months of Fiscal 2022 negatively impacted earnings per share by about $.27 to $.32, based on the Company's estimates of profit dollars on lost sales of approximately $1.43 billion to $1.59 billion (see below).
CEO and President Comments
Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc., stated, 'I am extremely pleased with the continued strength of our business, with our overall open-only comp store sales up a very strong 14% over Fiscal 2020, and earnings per share of $.84, well above our plan. We saw robust trends throughout the quarter, with comp sales exiting the quarter as strong as the beginning of the quarter. Further, our home businesses across all of our divisions continued their phenomenal performance, and overall apparel open-only comp store sales increased mid-single digits. I want to recognize the extraordinary work and dedication of our global Associates, especially our store and distribution center Associates, who are physically coming into work to serve our customers, and the teams throughout the Company that have driven these outstanding results despite the global supply chain challenges. We are extremely well-positioned for the holiday selling season, and overall open-only comp store sales to start the fourth quarter are up mid-teens. We feel great about our ability to deliver customers an exciting mix of gift-giving merchandise and amazing brands and values throughout the holiday selling period. We are in an excellent inventory position, with most of the product needed for the holiday season either on hand or scheduled to arrive at our stores and online in time for the holidays. We are very confident in our ability to continue to gain market share, improve our profitability in the medium to long term, and reach our strategic vision of TJX becoming a $60 billion company.'
Sales by Business Segment
The Company's open-only comparable store sales and net sales by division in the third quarter of FY22 and third quarter FY20 comparable store sales were as follows:
See full release at: https://investor.tjx.com/news-releases/news-release-details/tjx-companies-inc-reports-very-strong-q3-fy22-sales-and-eps
About The TJX Companies, Inc.
The TJX Companies, Inc. is the leading off-price retailer of apparel and home fashions in the U.S. and worldwide. As of October 30, 2021, the end of the Company's third quarter, the Company operated a total of 4,684 stores in nine countries, the United States, Canada, the United Kingdom, Ireland, Germany, Poland, Austria, the Netherlands, and Australia, and five e-commerce sites. These include 1,285 T.J. Maxx, 1,148 Marshalls, 850 HomeGoods, 55 Sierra, and 39 Homesense stores, as well as tjmaxx.com, marshalls.com, homegoods.com, and sierra.com, in the United States; 292 Winners, 147 HomeSense, and 106 Marshalls stores in Canada; 618 T.K. Maxx and 78 Homesense stores, as well as tkmaxx.com, in Europe; and 66 T.K. Maxx stores in Australia. TJX's press releases and financial information are available at TJX.com.
Third Quarter Fiscal 2022 Earnings Conference Call
At 11:00 a.m. ET today, Ernie Herrman, Chief Executive Officer and President of TJX, will hold a conference call to discuss the Company's third quarter Fiscal 2022 results, operations, and business trends. A real-time webcast of the call will be available to the public at TJX.com. A replay of the call will also be available by dialing (866) 367-5577 (U.S. only) or (203) 369-0233 through Wednesday, November 24, 2021, or at TJX.com.
Important Information at Website
Archived versions of the Company's conference calls are available in the Investors section of TJX.com after they are no longer available by telephone, as are reconciliations of non-GAAP financial measures to GAAP financial measures and other financial information. The Company routinely posts information that may be important to investors in the Investors section at TJX.com. The Company encourages investors to consult that section of its website regularly.
Forward-looking Statement
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Various statements made in this release are forward-looking and involve a number of risks and uncertainties. All statements that address activities, events or developments that we intend, expect or believe may occur in the future are forward-looking statements. The following are some of the factors that could cause actual results to differ materially from the forward-looking statements: the ongoing COVID-19 pandemic and associated containment and remediation efforts; execution of buying strategy and inventory management; various marketing efforts; customer trends and preferences; competition; operational and business expansion; management of large size and scale; merchandise sourcing and transport; labor costs and workforce challenges; personnel recruitment, training and retention; data security and maintenance and development of information technology systems; corporate and retail banner reputation; cash flow; expanding international operations; fluctuations in quarterly operating results and market expectations; mergers, acquisitions, or business investments and divestitures, closings or business consolidations; real estate activities; inventory or asset loss; economic conditions and consumer spending; market instability; serious disruptions or catastrophic events; disproportionate impact of disruptions in the final quarter of the fiscal year; commodity availability and pricing; adverse or unseasonable weather; fluctuations in currency exchange rates; compliance with laws, regulations and orders and changes in laws, regulations and applicable accounting standards; outcomes of litigation, legal proceedings and other legal or regulatory matters; quality, safety and other issues with our merchandise; tax matters; and other factors that may be described in our filings with the Securities and Exchange Commission. We do not undertake to publicly update or revise our forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied in such statements will not be realized.
The TJX Companies, Inc. and Consolidated Subsidiaries
See full release at: https://investor.tjx.com/news-releases/news-release-details/tjx-companies-inc-reports-very-strong-q3-fy22-sales-and-eps
Notes to Consolidated Condensed Statements
The novel coronavirus disease ('COVID-19') was identified in December 2019 before spreading worldwide. In response to the COVID-19 pandemic, primarily during the first quarter of fiscal 2021, the Company took several steps to strengthen its financial position and balance sheet and to maintain financial liquidity and flexibility. The COVID-19 pandemic is complex and rapidly evolving and the severity and duration of the pandemic is still unknown. Additionally, its resurgence or the emergence of new variants has caused and may continue to cause intermittent or prolonged periods of temporary store closures, and could elicit further actions and recommendations from governments and public health authorities that could impact the Company's operations. These and other factors have had and may continue to have a material impact on the Company's business, results of operations, financial position and liquidity.
On June 4, 2021, the Company completed make-whole calls for its $1.25 billion principal outstanding 3.50% Notes due April 15, 2025, and its $750 million principal outstanding 3.75% Notes due April 15, 2027, both of which were issued in the first quarter of fiscal 2021. As a result of these redemptions prior to their scheduled maturities, the Company recorded a pre-tax debt extinguishment charge of $242 million in the second quarter of fiscal 2022. In addition, in the first quarter of fiscal 2022, the Company redeemed $750 million of its 2.75% Notes due June 15, 2021 at par.
During the third quarter ended October 30, 2021, the Company returned a total of $1.1 billion to shareholders. The Company repurchased and retired 11.7 million shares of its common stock at a cost of $800 million on a 'trade date' basis and paid $313 million in shareholder dividends. During the nine months ended October 30, 2021, the Company returned a total of $2.0 billion to shareholders. The Company repurchased and retired 16.3 million shares of its common stock at a cost of $1.1 billion on a 'trade date' basis and paid $942 million in shareholder dividends. The Company now expects to repurchase approximately $1.75 billion to $2.0 billion of TJX stock in fiscal 2022. TJX records the repurchase of its stock on a cash basis, and the amounts reflected in the financial statements may vary from the above amounts due to the timing of settlement of repurchases.
The TJX Companies, Inc.
Debra McConnell
Global Communications
(508) 390-2323
Source: The TJX Companies, Inc.
THE TJX COMPANIES 
