U.S. Movers: Advanced Auto Parts, TJX, Target Corp

Scott Peters
15 Nov, 2023
New York City

Target Corp. soared 14.2% to $126.65 after the retailer reported positive quarterly results.

Comparable sales in the third quarter declined 4.9%, and declines in discretionary categories were partially offset by an increase in daily necessities categories, including beauty.

Total revenue declined 4.2% to $25.4 billion, net income in the quarter advanced 36.3% to $971 million from $712 million, and diluted earnings per share rose to $2.10 from $1.54 a year ago.

Inventory at the end of the quarter was 14% lower than a year ago, after a 19% decline in discretionary category inventories.

The company guided fourth-quarter comparable store sales to decline in a wider range around the mid-single digit, reflecting uncertainties about holiday spending.

Advanced Auto Parts declined 4.8% to $55.50 after the specialty retailer reported mixed quarterly results.

Revenue in the quarter increased by 2.9% to $2.7 billion, and comparable store sales increased by 1.2%.

The company swung to a net loss of $48.6 million from a profit of $115.9 million, and diluted earnings per share fell to a loss of 82 cents from $1.92 a year ago.

The company tightened its 2023 net sales outlook range to between $11.25 billion and $11.30 billion from the previous range between $11.25 billion and $11.35 billion.

The retailer sharply lowered its 2023 diluted earnings per share range to between $1.40 and $1.80 from the previous estimate of between $4.50 and $5.10 in August.

The company also lowered its 2023 free cash flow range to between $50 million and $100 million from the previous estimate of between $150 million and $250 million.

On October 31, the company declared a regular cash dividend of 25 cents per share to be paid on January 26, 2024, to all common stockholders of record as of January 12, 2024.

TJX Companies fell 2.5% to $90.20 after the apparel and household goods retailer reported positive quarterly results, but the company's guidance fell short of some investors' expectations.

Revenue in the third quarter ending in October rose 9% to $13.3 billion from $12.2 billion, net income advanced to $1.2 billion from $1.1 billion, and diluted earnings per share rose to $1.03 from 91 cents a year ago.

Comparable store sales in the quarter increased by 6%, slower than 14% a year ago.

U.S. comparable stores at Home Goods chain rose 9% compared to a decline of 16%, and Marmaxx stores (TJ Maxx and Marshall stores) increased 7% compared to 3% increase a year ago, respectively.

Total inventories at the end of the quarter were $8.3 billion, flat compared to a year ago.

During the quarter, the company repurchased $650 million of its own shares, retired 7.2 million shares, and paid $380 million in shareholder dividends.

The company now expects to repurchase approximately $2.25 billion to $2.5 billion of its stock during the fiscal year ending on February 3, 2024.

TJX estimated comparable sales in the fourth quarter to increase between 3% and 4%, and diluted earnings per share between $1.07 and $1.10.

For the fiscal year ending on February 4, 2024, the retailer estimated comparable sales to increase between 4% and 5% and diluted earnings per share between $3.71 and $3.74, including the benefit of the 53rd week.