Lowe’s, Target And TJX Q2 Profit Tops View
Off-price retailer TJX Companies Inc. (TJX) reported a profit for the second-quarter, that topped Wall Street estimates. The company said its comp store sales increase and very strong bottom line results were well above its plans for the second quarter.
Discount retailer Target Corp. (TGT) recorded an increase in profit for the second-quarter that beat analysts’ estimates. Comparable sales growth was 8.9 percent, for the quarter. The company’s Board has authorized a $15 billion share repurchase program.
Home improvement retailer Lowe’s Companies Inc. (LOW) reported second-quarter results above estimates, and also increased the company’s fiscal 2021 financial outlook. Shares of Lowe’s were up 4% in pre-market trade on Wednesday.
The TJX Companies reported second quarter earnings per share of $0.64, compared to a loss of $0.18, a year ago. Second quarter result included a debt extinguishment charge of $0.15 per share. The company estimates that temporary store closures for approximately 3% of the second quarter negatively impacted earnings per share by about $0.05 to $0.07. On average, 23 analysts polled by Thomson Reuters expected the company to report profit per share of $0.57, for the quarter. Analysts’ estimates typically exclude special items. Net income was $785.68 million compared to a loss of $214.22 million, last year.
The TJX Companies reported that its second-quarter net sales increased to $12.08 billion from $6.67 billion, a year ago. Analysts expected revenue of $11.01 billion, for the quarter. Overall open-only comp store sales increased 20% over over second quarter of fiscal 2020.
The TJX Companies said, for the start of the third quarter, sales are very strong, with overall open-only comp store sales up mid-teens over the third quarter of fiscal year 2020. The company increased range for expected full year fiscal 2022 share repurchases by $250 million to $1.25 billion to $1.50 billion.
Target Corp. reported second quarter adjusted EPS of $3.64, up 7.9 percent from $3.38, a year ago. On average, 23 analysts polled by Thomson Reuters expected the company to report profit per share of $3.49, for the quarter. Total revenue was $25.2 billion, up 9.5 percent from last year. Analysts expected revenue of $25.08 billion, for the quarter.
For the second half of 2021, Target Corp. expects high single digit growth in comparable sales, near the high end of the previous guidance range. The company now expects full year operating income margin rate will be 8 percent or higher.
Lowe’s Companies reported second quarter EPS of $4.25, up 13% from adjusted EPS of $3.75, a year ago. On average, 26 analysts polled by Thomson Reuters expected the company to report profit per share of $4.00, for the quarter. Analysts’ estimates typically exclude special items.
Lowe’s Companies reported second-quarter total sales of $27.6 billion compared to $27.3 billion, last year. Comparable sales decreased 1.6%. Comparable sales for the U.S. home improvement business decreased 2.2% for the second quarter. Analysts expected revenue of $26.79 billion, for the quarter.
Looking ahead, Lowe’s projects fiscal 2021 revenue of approximately $92 billion. Analysts expect the company to report revenue of $91.53 billion.
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