TJX Companies Inc (NYSE:TJX), the leading off-price retailer of apparel and home fashions in the U.S. and worldwide, stock fell 0.29% (As on Nov 18, 11:10:54 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 21. The company’s bottom line came in at $1.02 billion compared with $0.87 billion in last year’s third quarter. For the third quarter of Fiscal 2022, the Company’s consolidated pretax profit margin was 11.0%, a 0.3 percentage point increase versus the third quarter of Fiscal 2020. The Company’s very strong sales and merchandise margin increase more than offset incremental freight expense of 1.6 percentage points as well as substantial investments to expand distribution capacity, higher incentive accruals, and wage increases. Net COVID costs negatively affected pretax margin by an additional 0.5 percentage points. Gross profit margin for the third quarter of Fiscal 2022 was 29.5%, a 0.7 percentage point increase versus the third quarter of Fiscal 2020. Total inventories as of October 30, 2021 were $6.6 billion, compared with $6.3 billion at the end of the third quarter of Fiscal 2020. Overall availability of quality, branded merchandise in the marketplace remains excellent. The Company is in a strong position to deliver a consistent flow of fresh gift assortments throughout the holiday season as most of the inventory needed has already been delivered to the Company or is scheduled to arrive in its stores and online in time for the holidays.
TJX in the third quarter of FY 21 has reported the adjusted earnings per share of 84 cents, beating the analysts’ estimates for the adjusted earnings per share of 81 cents, according to figures compiled by Thomson Reuters. The company had reported the adjusted revenue growth of 23.8 percent to $12.53 billion in the third quarter of FY 21, beating the analysts’ estimates for revenue of $12.27 billion. Overall open-only comp store sales increased 14% over a 4% increase in the third quarter of Fiscal 2020.
Additionally, during the third quarter of Fiscal 2022, the Company generated $1.0 billion of operating cash flow and ended the quarter with $6.8 billion of cash. During the third quarter, the Company returned a total of $1.1 billion to shareholders. The Company repurchased a total of $800 million of TJX stock, retiring 11.7 million shares, and paid $313 million in shareholder dividends. The Company now expects to repurchase approximately $1.75 billion to $2.0 billion of TJX stock in Fiscal 2022, an increase of $500 million versus its prior plan.