TJX Companies, Inc. (NYSE: TJX) dropped 7% after announcing fourth-quarter operating and sales results ended January 29, 2022. Net sales for this particular quarter came to about $13.9 billion, representing a 27% increase from what the corporation recorded in the same quarter of the previous financial year.
Stores were shut down for roughly 13% of Q4 2021. As a result, sales of the US open-only comp stores grew by 13%. However, there was a 10% increase in overall comp, open-only store sales. The company recorded $940 million net income in the fourth quarter and reported $0.78 diluted earnings per share in the same quarter.
Top management statements
The TJX Companies’ President and Chief Executive Officer, Ernie Herman, said:
As I reflect on 2021, I could not be prouder of our Associates and teams around the world. Together, they persevered through the challenges that COVID-19 presented for yet another year and kept the health and safety of our Associates and customers a top priority.
The CEO especially recognized their distribution and store center Associates, who’ve been physically going into work to attend to their clientele.
Herman also thanked the TJX’s global teams that withstood all the supply chain difficulties to make sure a consistent flow of innovating and exciting products for their customers throughout the year, more so during the holiday seasons. The CEO continued:
For the year, US open-only comp sales were up 17% and overall open-only comp store sales increased 15% over Fiscal 2020, with double-digit increases for both the US businesses and overall TJX every quarter of the year.
Financial highlights
For the fourth quarter, the company witnessed a 13% increase in open-only comp sales for the United States and a 10% overall open-only comps growth, both more than 6% comp sales increments in Q4 2020.
It recorded a 27.1% gross profit margin in the fourth quarter of the 2022 financial year, representing a 1.3% decrease. However, selling, general, and administrative costs came to 18% of sales in the same quarter, representing a 0.5% growth.
For the full 2022 fiscal year, the company generated operating cash flow of $3.1 billion and closed the fiscal year with about $6.2 billion in cash.
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