TJX Companies (NYSE: TJX) beat earnings estimates for it's first quarter, but stock still saw a slight dip after the report was released.
The parent company for TK and TJ Maxx reported a Q1 earnings per share (EPS) of $0.92, just above the estimated $0.91, and a 3% growth in consolidated comparable sales.
The HomeGoods division, with 4% comp sales growth, was leading the charge in performance.
Revenue was just ahead of expectations, landing at US$13.11 billion versus $13.02 billion expected.
However, stock prices dropped by 2.9% on Wednesday, with investors concerned over inventory levels increasing by 15%, or 7% per store.
Additionally, the company’s pre-tax profit margin decreased by 80 basis points to 10.3%.
“I am very pleased with our first quarter performance…the second quarter is off to a strong start and we are laser focused on executing all the key fundamentals of our off-price retail model." said CEO Ernie Herman, in the earnings press release.
“I am as confident as ever that we will bring our value proposition to even more customers around the world and keep growing our sales and profitability over the long term.”
At the time of writing, TJX Companies (NYSE: TJX) stock was trading at US$131.03, down 2.9% from Thursday's close of $134.93. TJX Companies' market cap stands at $146.29 billion.
