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TJX Shares Climb on Earnings Beat, Dividend Boost and Stock Buyback

TJX shares climbed after the parent of T.J. Maxx and Marshalls beat quarterly expectations, increased its dividend and approved a share repurchase.
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TJX (TJX) - Get Free Report shares were higher after the parent of T.J. Maxx, Marshalls, and other chains beat Wall Street's fiscal-fourth-quarter earnings and revenue expectations, increased its dividend and approved a new share repurchase.

The Framingham, Mass., retailer was leading the S&P 500 gainers in recent trading, rising 7.1% to $63.94.

Net income for the quarter ended Feb. 1 totaled $984.8 million, or 81 cents a share, up from $841.5 million, or 68 cents, in the year-earlier period. The latest result beat the FactSet analyst survey's call for earnings of 77 cents a share.

Sales totaled $12.2 billion, up 10% from $11.1 billion a year earlier, and topping FactSet's call for $11.8 billion. 

Same-store sales grew 6%, nearly double FactSet's forecast for 3.1% growth.

"We saw strength across the company, with each major division delivering comp sales growth of 4% or higher, all over strong increases last year and all primarily driven by customer traffic," Ernie Herman, president and chief executive, said in a statement.

Looking ahead, TJX forecast fiscal-first-quarter earnings of 59 cents to 60 cents a share, That's up from 57 cents a year earlier but lags FactSet's estimate of 61 cents a share.

TJX said it planned to buy back $1.75 billion to $2.25 billion of stock during in fiscal 2021 ending Jan. 30. The board approved a new program, authorizing management to buy as much as an additional $1.5 billion of TJX stock periodically.

The new authorization represents about 2% of the company’s shares outstanding at current prices. The new stock repurchase marks the 21st such program the board has approved since 1997, TJX said.

In addition, TJX said it will increase the quarterly dividend 13% to 26 cents a share. The payout is to be declared in March and paid in June, TJX said. This year marks the 24th consecutive year in which the company has raised its dividend.