Executive Summary

• The TJX Companies reported 2Q16 EPS of $0.84 versus the consensus estimate of $0.81.
• Total revenues were $7.88 billion, above expectations of $7.85 billion. Comps were up 4%, beating expectations of 3.5%, and were almost completely driven by higher traffic. The period marked the seventh consecutive quarter in which comps were primarily driven by increases in traffic. Units per transaction increased, while average ticket declined by slightly more than planned. Both the apparel (including accessories) and home categories performed well.
• For the full year, the company raised its EPS outlook to $3.39–$3.43 from $3.35–$3.42 previously, based on 3%–4% expected comp growth. The increase is based on better performance in the second quarter.