Core Viewpoint - Goldman Sachs analyst Brooke Roach maintains a Buy rating on TJX Companies, Inc. with a price forecast of $137, following the company's strong third-quarter earnings report [1]. Financial Performance - TJX reported third-quarter earnings per share of $1.14, an 11% increase, surpassing the street view of $1.09 [1]. - Quarterly sales reached $14.06 billion, reflecting a 6% increase and exceeding the analyst consensus estimate of $13.95 billion [1]. - The company experienced a 3% increase in consolidated comparable store sales, driven entirely by higher customer transactions [1]. Analyst Sentiment - Roach expresses optimism about TJX's continued momentum in transaction-driven comparable sales across its brands and strong execution in both new and existing categories [2]. - The analyst maintains a constructive view on the company's performance and growth potential [2]. Long-term Growth Potential - There is significant long-term growth potential for TJX on a global scale, with opportunities to gain market share and expand margins [3]. - Stronger vendor relationships and improved merchandise margins position TJX well to navigate short-term industry challenges, such as tariffs and freight costs [3]. Market Trends - Despite choppy trends in various consumer discretionary sub-sectors, Roach is encouraged by TJX's strong messaging regarding the home sector and early fourth-quarter growth momentum [4]. - Unseasonable weather and the impacts of hurricanes are expected to be key topics as companies report quarterly results, particularly concerning early holiday selling trends for off-price and department store competitors [5]. Stock Performance - TJX shares are currently trading lower by 0.29% at $119.47 [6].

Core Viewpoint - TJX Companies is expected to achieve new stock price highs due to ongoing retail trends driven by price-conscious shoppers, margin strength, and robust capital returns despite tepid guidance [1][5]. Financial Performance - TJX Companies reported a revenue growth of 5.7%, outperforming the industry with a low-single-digit margin [3]. - The company’s gross margin widened by 50 basis points, with a pre-tax profit margin of 12.3%, which is at the high end of expectations [4]. - GAAP EPS grew by 11%, exceeding consensus by 400 basis points [4]. Guidance and Forecast - The revenue forecast was maintained, with EPS expected to be in the range of $4.15 to $4.17, reflecting an increase of nearly 8% [5]. - Analysts have a 12-month stock price forecast of $127.41, indicating a 6.41% upside potential [4]. Shareholder Returns - TJX Companies has been actively buying back shares, reducing the count by 1.45% in Q3, indicating a commitment to shareholder returns [2]. - The company has a strong cash flow that supports investments and acquisitions while maintaining balance sheet health [6]. Analyst Sentiment - Analysts maintain a "Moderate Buy" rating for TJX Companies, with a consensus price target that has increased by 30% year-over-year [7]. - The stock is expected to break critical resistance levels, potentially leading to sustained rallies [8].

Financial Data and Key Metrics Changes - Comp store sales growth of 3% was achieved, at the high end of the company's plan, driven entirely by customer transactions [9][14] - Pre-tax profit margin increased to 12.3%, up 30 basis points year-over-year, exceeding plans [15][16] - Diluted earnings per share rose to $1.14, an 11% increase compared to the previous year, also above expectations [16] Business Line Data and Key Metrics Changes - Marmaxx saw a 2% increase in comp store sales, with a segment profit margin of 14.3%, up 30 basis points year-over-year [17] - HomeGoods experienced a 3% increase in comp store sales, with segment profit margin growing to 12.3%, up 200 basis points year-over-year [19] - TJX International reported a 7% increase in comp store sales, with segment profit margin improving to 7.2%, up 180 basis points year-over-year [23] Market Data and Key Metrics Changes - At TJX Canada, comp store sales increased by 2%, but segment profit margin on a constant currency basis decreased by 170 basis points due to non-recurring items and increased freight costs [21] - The European market showed strong performance, contributing to the overall success of the TJX International division [23] Company Strategy and Development Direction - The company plans to expand its T.K. Maxx banner in Spain, with expectations to open over 100 stores in the long term [34] - There is a focus on maintaining a value gap relative to competitors, especially in light of potential tariffs and supply chain challenges [49] - The company aims to continue capitalizing on the growth of off-price retail globally, leveraging its flexible business model and decades of expertise [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fourth quarter, citing strong availability of goods and a commitment to delivering value to shoppers [12][28] - The company is optimistic about gaining additional market share both in the U.S. and internationally, with plans to flow fresh merchandise regularly [12][30] - Management noted that the macro environment in Europe remains stable, with performance driven by execution and favorable weather conditions [82] Other Important Information - The company reported a 1% increase in balance sheet inventory, while inventory per store decreased by 2% [25] - Strong cash flow generation continues, allowing for reinvestment in growth and returning cash to shareholders through buybacks and dividends [26] Q&A Session Summary Question: Can you speak to the cadence of comps at Marmaxx and any changes in business momentum? - Management noted that Marmaxx started strong but was impacted by unseasonably warm weather and hurricanes, yet they are optimistic about Q4 performance [45] Question: How is the company addressing potential tariffs and supply chain issues? - Management emphasized their model's flexibility to maintain value gaps and noted that they have diversified sourcing away from China [49] Question: Can you discuss the composition of new customers by age and income level? - Management indicated a growing segment of younger customers (ages 18-34) while maintaining a balanced demographic across all income levels [55] Question: What is the outlook for margin expansion opportunities in 2025? - Management refrained from providing specific guidance but indicated that top-line growth remains the primary lever for margin expansion [64] Question: How is the HomeGoods division performing in terms of profitability? - Management highlighted a 200 basis point improvement in HomeGoods margin, driven by the closure of the online business and expense efficiencies [77]

The TJX Companies, Inc. (TJX) posted strong third-quarter fiscal 2025 results, wherein the top and bottom lines increased year over year and beat the Zacks Consensus Estimate. With stronger-than-expected profitability in the fiscal third quarter, management is raising its full-year guidance for pretax profit margin and earnings per share (EPS).TJX Companies’ earnings were $1.14 per share, rising 11% year over year. The metric surpassed the Zacks Consensus Estimate of $1.09.Find the latest EPS estimates and ...

Core Insights - TJX Companies, operator of discount retailers including TJ Maxx, reported higher-than-expected quarterly results and raised its full-year earnings outlook [1][2] - The company experienced strong sales growth in Europe, contributing to gains in its international business [2][3] Financial Performance - TJX reported third-quarter net sales of $14.1 billion, a 6% increase year-over-year, surpassing estimates of $13.93 billion [2] - Earnings per share (EPS) reached $1.14, exceeding the $1.08 EPS estimate [3] Future Outlook - The company forecasts a 3% increase in full-year consolidated comparable store sales [3] - TJX raised its full-year pretax profit margin outlook to 11.3% and expects EPS to be in the range of $4.15 to $4.17 [4]

Core Insights - TJX reported revenue of $14.06 billion for the quarter ended October 2024, reflecting a 6% increase year-over-year and surpassing the Zacks Consensus Estimate of $13.96 billion by 0.73% [1] - Earnings per share (EPS) for the quarter was $1.14, up from $1.03 in the same quarter last year, exceeding the consensus EPS estimate of $1.09 by 4.59% [1] Financial Performance Metrics - Comparable store sales increased by 3% overall, slightly below the average estimate of 3.6% [3] - HomeGoods comparable store sales rose by 3%, outperforming the average estimate of 1.5% [3] - Marmaxx comparable store sales grew by 2%, below the average estimate of 3.6% [3] - Consolidated same-store sales for TJX International (Europe & Australia) increased by 7%, exceeding the average estimate of 3.5% [3] - Comparable store sales in TJX Canada rose by 2%, above the average estimate of 1.3% [3] - The company opened 56 new stores, below the average estimate of 68 [3] - Total number of stores reached 5,057, slightly below the average estimate of 5,069 [3] - For T.J. Maxx in the U.S., the number of stores was 1,331, compared to the estimate of 1,339 [3] Sales Performance - Net sales for Marmaxx were reported at $8.44 billion, below the average estimate of $8.62 billion, representing a year-over-year increase of 4.1% [3] - Net sales for TJX International reached $1.89 billion, exceeding the average estimate of $1.73 billion, with a year-over-year change of 15.6% [3] - Net sales for TJX Canada were $1.38 billion, slightly above the average estimate of $1.36 billion, reflecting a 4.9% year-over-year increase [3] - HomeGoods net sales amounted to $2.36 billion, surpassing the average estimate of $2.29 billion, with a year-over-year change of 6.7% [3] Stock Performance - TJX shares have returned 3.8% over the past month, outperforming the Zacks S&P 500 composite's 1% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [4]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

TJX Companies Inc (NYSE:TJX) announced better-than-expected results for the third quarter and raised its full-year forecast, but lackluster fiscal fourth-quarter guidance appears to be hurting shares. Disappointing results from sector peer Target (TGT) are weighing on retailers as well. At last glance, TJX is down 1.5% to trade at $117.75, on track for its third-straight loss as it extends a pullback from its Nov. 14, record closing high of $121.13. The security still sports a 27.4% year-to-date lead, and ...

TJX (TJX) came out with quarterly earnings of $1.14 per share, beating the Zacks Consensus Estimate of $1.09 per share. This compares to earnings of $1.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.59%. A quarter ago, it was expected that this parent of T.J. Maxx, Marshalls and other stores would post earnings of $0.92 per share when it actually produced earnings of $0.96, delivering a surprise of 4.35%.Over the last fo ...

Financial Performance - Q3 FY25 net sales reached $14.1 billion, a 6% increase compared to Q3 FY24[2] - Q3 FY25 diluted earnings per share were $1.14, up 11% from $1.03 in Q3 FY24[2] - Q3 FY25 pretax profit margin was 12.3%, an increase of 0.3 percentage points from the previous year[7] - For the first nine months of FY25, net sales totaled $40.0 billion, also a 6% increase year-over-year[3] - Net sales for the thirteen weeks ended November 2, 2024, were $14,063 million, an increase from $13,265 million for the same period last year, representing a growth of 6%[38] - Net income for the thirty-nine weeks ended November 2, 2024, was $3,466 million, compared to $3,071 million for the same period last year, reflecting an increase of 12.9%[38] - Diluted earnings per share for the third quarter were $1.14, up from $1.03 in the prior year, indicating a growth of 10.7%[38] - Total net sales for the third quarter ended November 2, 2024, reached $8.438 billion, a 4.1% increase from $8.107 billion in the same period last year[46] - Total net sales for the nine months ended November 2, 2024, were $24.633 billion, a 5.4% increase from $23.376 billion in the same period last year[46] Shareholder Returns - The company returned $997 million to shareholders in Q3 FY25 through share repurchases and dividends[14] - The company returned $997 million to shareholders in the third quarter, including $574 million for repurchasing 5.0 million shares and $423 million in dividends[49] - For the nine months ended November 2, 2024, the total return to shareholders was $2.9 billion, comprising $1.7 billion in share repurchases and $1.2 billion in dividends[49] - The company has approximately $1.9 billion available for stock repurchase under the newly approved program as of November 2, 2024[49] - The company declared cash dividends of $0.375 per share, up from $0.3325 per share in the same quarter last year, representing an increase of 12.8%[38] Inventory and Assets - Cash and cash equivalents increased to $4,718 million as of November 2, 2024, compared to $4,290 million at the end of the previous fiscal year[41] - Merchandise inventories rose to $8,371 million from $8,285 million year-over-year, showing a slight increase of 1.04%[41] - Total assets increased to $32,436 million as of November 2, 2024, compared to $30,351 million a year earlier, marking a growth of 6.9%[41] Future Plans and Expansion - The company plans to enter Spain with its TK Maxx banner in early 2026[2] - The company plans to continue expanding its store footprint and enhancing its e-commerce capabilities to drive future growth[30] - The joint venture with Grupo Axo was completed for $179 million, with TJX owning 49%[20] - A 35% stake in Brands For Less was acquired for $344 million, expanding TJX's presence in the Middle East[21] Segment Performance - Segment profit for Marmaxx in the United States was $1.207 billion, up from $1.134 billion, reflecting a 6.4% increase year-over-year[46] - Total segment profit for HomeGoods was $290 million, an increase from $228 million, representing a 27.2% year-over-year growth[46] - TJX Canada segment profit was $209 million, slightly down from $223 million, indicating a 6.3% decrease year-over-year[46] Profitability Metrics - The company expects consolidated comparable store sales to increase by 3% for the full year FY25[19] - The company anticipates a pretax profit margin of 11.3% and diluted earnings per share between $4.15 and $4.17 for FY25[19] - The company reported income before income taxes of $1.736 billion for the third quarter, compared to $1.589 billion in the prior year, marking a 9.2% increase[46] Pricing Strategy - TJX is focused on maintaining its competitive pricing strategy, offering products at prices generally 20% to 60% below full-price retailers[30] - Operating cash flow for the thirty-nine weeks ended November 2, 2024, was $3,412 million, compared to $3,257 million for the same period last year, reflecting a growth of 4.8%[43]