Earnings Roundup: Target, Walmart & TJX

While Wal-Mart Stores Inc. faced ongoing currency pressures in Q2, TJX Co. Inc. and Target Corp. reported above-expectations earnings for the quarter, boosting investor sentiment on those firms.

Here, we give you the highlights of the three companies’ Q2 earnings reports.

Target Corp. (Aug. 19)

* Minneapolis-based Target Corp.’s Q2 sales increased 2.8 percent, to $17.4 billion, from $17 billion in the comparable quarter of last year, reflecting a 2.4 percent increase in comparable sales combined with sales from new stores.

* Net income grew 113 percent year-over-year, to $753 million, from the comparable quarter, when earnings were $234 million.

* Second-quarter adjusted EPS of $1.22 was above the company’s expected range of $1.04 to $1.14.

* Target now expects full-year 2015 adjusted EPS of $4.60 to $4.75, compared with prior guidance of $4.50 to $4.65.

* Digital-channel sales grew 30 percent and contributed 0.6 percentage points to comparable-sales growth.

* Comparable sales in signature categories — Style, Baby, Kids and Wellness — grew three times faster than the company average, resulting in comparable-sales growth of four percent to five percent in both Home and Apparel, the company said.

TJX Co. Inc. (Aug. 18)

* The Framingham, Mass.-based firm — whose companies include TJ Maxx, Marshalls and Home Goods — posted improved net sales of $7.4 billion, compared with the comparable quarter, when net sales totaled $7 billion.

* Profits also gained year-over-year, to $549 million, compared with the year-ago quarter’s profits of $518 million.

* Diluted EPS were 80 cents, up from the comparable quarter, when diluted EPS were 73 cents.

* The firm’s comparable-sales growth increased 6 percent in Q2, compared with last year’s increase of 3 percent.

Wal-Mart Stores Inc. (Aug. 18)

* Bentonville, Ark.-based Wal-Mart said its Q2 diluted EPS from continuing operations was $1.08; currency-exchange rates negatively affected EPS by approximately 4 cents.

* Total revenue was $120.2 billion, relatively flat year-over-year. On a constant-currency basis, total revenue was $124.5 billion, up from the comparable quarter, when FX-neutral revenues were $120.1 billion.

* Operating income declined 10 percent — or 7.2 percent currency neutral — to $6.1 billion.

* Comp sales at Walmart U.S. increased 1.5 percent, the firm said, driven by traffic improvement of 1.3 percent.

* E-commerce sales globally increased 16 percent on a constant-currency basis.

* Walmart lowered its full-year EPS guidance to $4.40 to $4.70, from its previous EPS guidance of $4.70 to $5.05. This range includes Q3 EPS guidance of 93 cents to $1.05.

* Walmart said its Q2 earnings were pressured by currency fluctuations, lower Walmart U.S. margins and investments in customer experience.

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