Financial Data and Key Metrics - Consolidated comp store sales increased by 3%, driven entirely by customer transactions [6] - Pretax profit margin was 11.1%, up 80 basis points, 50 basis points above plan [9] - Diluted earnings per share increased by 22%, well above plan due to pretax profitability outperformance and a lower-than-expected tax rate [10] - Gross margin increased by 110 basis points, driven by lower freight costs and favorable mark-on [9] - SG&A increased by 20 basis points due to incremental store wage and payroll costs [9] - Net interest income benefited pretax profit margin by 10 basis points [10] Business Line Performance - Marmaxx comp store sales increased by 2%, with segment profit margin at 14.2%, up 20 basis points [10] - HomeGoods comp store sales increased by 4%, with segment profit margin at 9.5%, a 220-basis point improvement [11] - TJX Canada comp store sales increased by 4%, with segment profit margin at 12.4%, up 110 basis points [11] - TJX International comp store sales increased by 2%, with segment profit margin at 3.9%, up 120 basis points [11] Market Performance - The company is performing better than most major retailers in Canada and Europe [12] - The company is confident in its position as a leading shopping destination for value-seeking customers in Canada, Europe, and Australia [12] Company Strategy and Industry Competition - The company's off-price business model is flexible and resilient, with a focus on opportunistic buying and expansive assortments [14] - The company sees significant market share opportunities across the U.S., Canada, Europe, and Australia, with potential to expand store footprint by at least 1,300 stores [15] - The company has over 1,300 global buyers sourcing from more than 21,000 vendors and 100 countries, ensuring a steady supply of quality branded merchandise [15] - The company emphasizes its value proposition and plans to flow fresh assortments to stores and online throughout the year [8] Management Commentary on Operating Environment and Future Outlook - The company is confident in its near- and long-term growth opportunities, citing its wide customer demographic reach and ability to attract new Gen Z and millennial shoppers [14] - The company is pleased with its inventory levels and is well-positioned to capitalize on outstanding buying opportunities in the marketplace [8] - The company expects to continue gaining market share and increasing profitability over the long term [18] Other Important Information - Balance sheet inventory was down 3% versus the first quarter of last year, with in-store inventory in line with last year's levels [13] - The company generated strong cash flow, reinvested in growth, and returned cash to shareholders through buyback and dividend programs [13] Q&A Session Question: Drivers of market share gains and confidence in multiyear runway [24] - The company sees balanced performance across categories, with no single area driving comps more than expected [25] - The company's treasure hunt format and ability to offer good, better, and best merchandise across income and age groups differentiate it from competitors [28] - The company is becoming more important to vendors, with improved vendor relationships and consistent inventory availability [29] Question: New customer acquisition and trade-down trends [34] - The company continues to attract younger customers and sees balanced performance across income groups [35][36] - The company aims to appeal to a broad range of income and age demographics while focusing on younger customers [37] Question: Outlook for HomeGoods segment and home category [38] - The company sees continued market share opportunities in the home segment, with flexibility to adjust categories based on demand [40] - The company is focusing on consumables to drive repeat traffic in HomeGoods [41] Question: Competition for deals and promotional landscape [46] - The company's buyers are well-trained and maintain strong vendor relationships, ensuring competitive pricing [49] - The promotional environment remains similar to previous periods, with no significant changes observed [50] Question: EBIT margin leverage and wage changes in California [53] - The company is leveraging on a 2% to 3% comp due to onetime items and improved freight efficiency [55] - The company adjusts wages on a market-by-market basis to manage hiring and retention [57] Question: Pricing strategy and inventory management [58] - The company maintains a competitive pricing strategy, ensuring it is not undersold by any retailer [59] - Store inventories are in line with last year's levels, with distribution center inventory adjustments due to timing [63] Question: Store growth potential and international performance [65] - The company sees significant store growth potential in existing markets but does not comment on new market developments [66] - The company is confident in its store growth plans in the U.S., Canada, and Europe [67] Question: International margins and gross margin outlook [70] - The company remains confident in achieving high single-digit margins for its international segment [72] - Freight efficiency and mark-on improvements are contributing to structural gross margin improvements [72] Question: Macro backdrop and competition from Chinese discounters [75] - The company attributes Marmaxx's 2% comp to unfavorable weather and sees little impact from Chinese discounters like Temu and Shein [76][77] Question: Remodel pace and shrink trends [78] - The company focuses on maintaining store fit and finish through remodels, with no significant changes in shrink trends [79][80] Question: Younger shopper behavior and cross-shopping [82] - The company is attracting younger shoppers and aims to build loyalty through credit card programs and cross-shopping [83][84] - Digital marketing is used to drive cross-shopping across brands, though measurement remains a challenge [88]

Key PointsTJX Companies had a solid quarter, outperforming the bottom line and raising profit guidance.All segments produced growth and contributed to the strength. The trend in analysts' sentiment is positive, leading the market to a new high. 5 stocks we like better than TJX CompaniesTJX Companies NYSE: TJX industry-leading position in off-price retail and quality operations will soon lead its stock price to new heights. Like Walmart NYSE: WMT, TJX Companies benefits from the high inflation and interest r ...

TJX Companies (TJX) stock jumped higher Wednesday after the off-price retailer beat sales and earnings expectations for its fiscal first quarter and raised its outlook for the full year.In the thirteen weeks ended May 4, the parent company of TJ Maxx, Marshalls, HomeGoods, Homesense and Sierra saw revenue increase 5.9% year-over-year to $12.5 billion. Earnings per share (EPS) were up 22.4% from the year prior to 93 cents."I am very pleased with our first-quarter performance," TJX CEO Ernie Herrman said in a ...

Key TakeawaysTJX beat quarterly profit estimates and raised its outlook as shoppers seeking lower prices drove up sales.Comparable store sales were up at all of the company's divisions, driven entirely by customer transactions.The news sent TJX shares to an all-time high Wednesday. TJX Companies (TJX) shares soared to a record high Wednesday as the discount clothing and home goods retailer reported better-than-expected quarterly profit and boosted its guidance as comparable store sales advanced across all i ...

The TJX Companies, Inc. (TJX) began fiscal 2025 on a strong note, with the first-quarter top and bottom lines increasing year over year and earnings easily surpassing the Zacks Consensus Estimate.The company has been focused on offering consumers attractive deals on popular brands and fashions. TJX witnessed comp sales growth across all segments, completely due to customer transactions, highlighting its solid value proposition. This performance bolsters management’s confidence in the ability to capture mark ...

TJX (TJX) reported $12.48 billion in revenue for the quarter ended April 2024, representing a year-over-year increase of 5.9%. EPS of $0.93 for the same period compares to $0.76 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $12.48 billion, representing a surprise of -0.01%. The company delivered an EPS surprise of +6.90%, with the consensus EPS estimate being $0.87.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expec ...

TJX (TJX) came out with quarterly earnings of $0.93 per share, beating the Zacks Consensus Estimate of $0.87 per share. This compares to earnings of $0.76 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.90%. A quarter ago, it was expected that this parent of T.J. Maxx, Marshalls and other stores would post earnings of $1.12 per share when it actually produced earnings of $1.12, delivering no surprise.Over the last four quart ...

[Q1 FY25 Financial Highlights](index=1&type=section&id=Q1%20FY25%20Financial%20Highlights) TJX reported strong Q1 FY25 results with a 3% increase in consolidated comparable store sales, driven by customer transactions, and net sales growth of 6% to $12.5 billion [Overall Performance](index=1&type=section&id=Overall%20Performance) TJX reported strong Q1 FY25 results, with a 3% increase in consolidated comparable store sales, driven entirely by customer transactions, net sales grew 6% to $12.5 billion, and pretax profit margin and diluted EPS of 11.1% and $0.93 respectively, both exceeded the company's plans, with EPS up 22% year-over-year Q1 FY25 Key Performance Indicators | Metric | Q1 FY25 Result | Year-over-Year Change | | :--- | :--- | :--- | | Net Sales | $12.5 billion | +6% | | Consolidated Comparable Store Sales | +3% | N/A | | Pretax Profit Margin | 11.1% | +0.8 p.p. | | Diluted Earnings Per Share (EPS) | $0.93 | +22% | - The 3% growth in comparable store sales was entirely driven by an increase in customer transactions, indicating strong customer traffic and engagement[1](index=1&type=chunk)[2](index=2&type=chunk) - The company returned **$886 million** to shareholders during the first quarter through a combination of share repurchases and dividends[1](index=1&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) The CEO, Ernie Herrman, expressed satisfaction with the Q1 performance, highlighting that profitability and earnings per share were well above expectations, attributing success to the company's focus on delivering value and a treasure-hunt shopping experience, which drove customer transaction growth across all divisions, and noted a positive start to Q2, expressing confidence in gaining market share and increasing profitability for the remainder of the year - The CEO emphasized that comparable sales growth at every division was entirely driven by customer transactions, underscoring the strength of the company's value proposition[2](index=2&type=chunk) - The company is confident in its ability to gain market share across all geographies and sees numerous opportunities for the business for the rest of the year[2](index=2&type=chunk) - The second quarter is reported to be off to a good start, and the company plans to pursue opportunities to drive customer transactions, sales, and profitability[2](index=2&type=chunk) [Q1 FY25 Performance Analysis](index=2&type=section&id=Q1%20FY25%20Performance%20Analysis) This section analyzes TJX's Q1 FY25 performance across sales, profitability, inventory, and foreign currency impacts [Sales Performance by Division](index=2&type=section&id=Sales%20Performance%20by%20Division) All divisions reported positive comparable store sales growth, led by HomeGoods (U.S.) and TJX Canada at +4% each, while Marmaxx (U.S.) and TJX International grew by 2%, with total net sales increasing by 6% to $12.5 billion, and TJX International showing the highest reported sales growth at 9% Q1 FY25 Comparable Store Sales Growth by Division | Division | Q1 FY25 Comp Sales Growth | Q1 FY24 Comp Sales Growth | | :--- | :--- | :--- | | Marmaxx (U.S.) | +2% | +5% | | HomeGoods (U.S.) | +4% | -7% | | TJX Canada | +4% | +1% | | TJX International | +2% | +4% | | **TJX Total** | **+3%** | **+3%** | Q1 FY25 Net Sales by Division ($ in millions) | Division | Q1 FY25 Net Sales | Q1 FY24 Net Sales | Reported Sales Growth | | :--- | :--- | :--- | :--- | | Marmaxx (U.S.) | $7,750 | $7,366 | +5% | | HomeGoods (U.S.) | $2,079 | $1,966 | +6% | | TJX Canada | $1,113 | $1,038 | +7% | | TJX International | $1,537 | $1,413 | +9% | | **TJX Total** | **$12,479** | **$11,783** | **+6%** | [Profitability and Margins](index=2&type=section&id=Profitability%20and%20Margins) The Q1 pretax profit margin increased by 0.8 percentage points to 11.1%, exceeding plans due to lower freight costs, a reserve release, and higher net interest income, while gross profit margin improved by 1.1 percentage points to 30.0% driven by lower freight and favorable markon, and SG&A costs as a percent of sales saw a slight increase of 0.2 percentage points due to wage and payroll costs - Pretax profit margin was **11.1%**, an increase of **0.8 percentage points** from 10.3% in Q1 FY24, which was well above the company's plan[7](index=7&type=chunk) - Gross profit margin increased by **1.1 percentage points** to **30.0%**, driven by a benefit from lower freight costs and favorable markon[7](index=7&type=chunk) - SG&A as a percentage of sales increased by **0.2 percentage points** to **19.2%** compared to Q1 FY24, primarily due to incremental store wage and payroll costs[7](index=7&type=chunk) [Inventory Management](index=3&type=section&id=Inventory%20Management) Total inventory decreased to $6.2 billion from $6.4 billion a year ago, with consolidated inventory per-store down 5% on both a reported and constant currency basis, positioning the company well to flow fresh merchandise - Total inventories as of May 4, 2024, were **$6.2 billion**, compared to **$6.4 billion** at the end of Q1 FY24[11](index=11&type=chunk) - Consolidated per-store inventory was down **5%** on both a reported and constant currency basis, positioning the company to take advantage of merchandise availability in the marketplace[11](index=11&type=chunk) [Impact of Foreign Currency Exchange Rates](index=3&type=section&id=Impact%20of%20Foreign%20Currency%20Exchange%20Rates) Foreign currency exchange rates had a neutral impact on net sales growth for Q1 FY25 but a positive $0.01 impact on diluted earnings per share - The movement in foreign currency exchange rates had a neutral impact on the Company's net sales growth in Q1 FY25 versus the prior year[10](index=10&type=chunk) - The overall net impact of foreign currency exchange rates had a positive **$0.01** impact on Q1 FY25 diluted earnings per share[10](index=10&type=chunk) [Shareholder Returns and Capital Allocation](index=3&type=section&id=Shareholder%20Returns%20and%20Capital%20Allocation) This section details TJX's cash flow generation and its strategy for returning capital to shareholders through repurchases and dividends [Cash Flow and Shareholder Distributions](index=3&type=section&id=Cash%20Flow%20and%20Shareholder%20Distributions) In Q1 FY25, TJX generated $737 million in operating cash flow and ended the quarter with $5.1 billion in cash, returning a total of $886 million to shareholders through $509 million in share repurchases (retiring 5.3 million shares) and $377 million in dividends, with plans to repurchase $2.0 to $2.5 billion of its stock for the full fiscal year Q1 FY25 Cash Flow and Shareholder Returns | Metric | Amount | | :--- | :--- | | Operating Cash Flow | $737 million | | Ending Cash Balance | $5.1 billion | | Share Repurchases | $509 million | | Shareholder Dividends | $377 million | | **Total Returned to Shareholders** | **$886 million** | - The company continues to expect to repurchase approximately **$2.0 billion to $2.5 billion** of TJX stock during the full fiscal year 2025[12](index=12&type=chunk) [FY25 Outlook](index=3&type=section&id=FY25%20Outlook) This section provides TJX's financial guidance for the second quarter and the full fiscal year 2025 [Second Quarter and Full Year Guidance](index=3&type=section&id=Second%20Quarter%20and%20Full%20Year%20Guidance) For Q2 FY25, TJX anticipates 2-3% comparable store sales growth and diluted EPS of $0.88-$0.90, while for the full fiscal year, the company raised its guidance, now expecting a pretax profit margin of 11.0%-11.1% and diluted EPS between $4.03 and $4.09, maintaining its 2-3% comp sales growth forecast Q2 FY25 Outlook | Metric | Guidance Range | | :--- | :--- | | Consolidated Comp. Store Sales | +2% to +3% | | Pretax Profit Margin | 10.4% to 10.5% | | Diluted EPS | $0.88 to $0.90 | Full Year FY25 Outlook (Updated) | Metric | Guidance Range | | :--- | :--- | | Consolidated Comp. Store Sales | +2% to +3% (unchanged) | | Pretax Profit Margin | 11.0% to 11.1% (increased) | | Diluted EPS | $4.03 to $4.09 (increased) | [Store Footprint](index=4&type=section&id=Store%20Footprint) This section outlines the changes in TJX's physical store presence and total retail square footage [Store Count and Square Footage](index=4&type=section&id=Store%20Count%20and%20Square%20Footage) During the first quarter, TJX increased its total store count by a net of 18 stores, bringing the total to 4,972, which resulted in a 0.3% increase in total square footage to 130.5 million square feet - The company increased its store count by a net of **18 stores** in Q1 FY25, reaching a total of **4,972 stores**[14](index=14&type=chunk) - Total square footage increased by **0.3%** versus the prior quarter to **130.5 million square feet**[14](index=14&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents the consolidated financial statements, including the income statement, balance sheets, cash flows, and segment information [Consolidated Financial Summary (Income Statement)](index=6&type=section&id=Consolidated%20Financial%20Summary%20(Income%20Statement)) For the thirteen weeks ended May 4, 2024, net sales were $12.48 billion, up from $11.78 billion in the prior year, with net income rising to $1.07 billion from $891 million, and diluted EPS increasing significantly to $0.93 from $0.76 Financial Summary (in Millions, except per share) | Account | Thirteen Weeks Ended May 4, 2024 | Thirteen Weeks Ended April 29, 2023 | | :--- | :--- | :--- | | Net sales | $12,479 | $11,783 | | Income before income taxes | $1,390 | $1,208 | | Net income | $1,070 | $891 | | Diluted earnings per share | $0.93 | $0.76 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of May 4, 2024, total assets were $29.68 billion, compared to $28.68 billion a year prior, with key changes including a decrease in merchandise inventories to $6.22 billion and an increase in shareholders' equity to $7.50 billion from $6.42 billion Balance Sheet Highlights (in Millions) | Account | May 4, 2024 | April 29, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $5,059 | $5,025 | | Merchandise inventories | $6,218 | $6,441 | | **Total assets** | **$29,679** | **$28,681** | | Total current liabilities | $10,100 | $10,534 | | Long-term debt | $2,863 | $2,860 | | **Shareholders' equity** | **$7,502** | **$6,422** | | **Total liabilities and shareholders' equity** | **$29,679** | **$28,681** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the quarter, net cash provided by operating activities was $737 million, slightly down from $745 million in the prior year, with the company using $427 million in investing activities, primarily for property additions, and $840 million in financing activities, driven by share repurchases ($509 million) and dividend payments ($380 million), resulting in a net decrease in cash of $541 million Cash Flow Summary (in Millions) | Activity | Thirteen Weeks Ended May 4, 2024 | Thirteen Weeks Ended April 29, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $737 | $745 | | Net cash (used in) investing activities | ($427) | ($362) | | Net cash (used in) financing activities | ($840) | ($837) | | **Net (decrease) in cash and cash equivalents** | **($541)** | **($452)** | [Segment Information](index=9&type=section&id=Segment%20Information) The Marmaxx segment remained the largest contributor to both net sales ($7.75 billion) and segment profit ($1.10 billion), with all segments showing year-over-year growth in both net sales and profit, and HomeGoods and TJX International demonstrating the strongest percentage profit growth Net Sales and Segment Profit (in Millions) | Segment | Net Sales (Q1 FY25) | Segment Profit (Q1 FY25) | Net Sales (Q1 FY24) | Segment Profit (Q1 FY24) | | :--- | :--- | :--- | :--- | :--- | | Marmaxx | $7,750 | $1,097 | $7,366 | $1,028 | | HomeGoods | $2,079 | $198 | $1,966 | $144 | | TJX Canada | $1,113 | $137 | $1,038 | $117 | | TJX International | $1,537 | $61 | $1,413 | $38 | | **Total Segment Profit** | **$1,493** | | **$1,327** | | [Notes and Disclosures](index=3&type=section&id=Notes%20and%20Disclosures) This section provides additional context and important disclosures regarding the financial report [Notes to Consolidated Condensed Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Condensed%20Statements) In Q1, the company returned $886 million to shareholders via $509 million in stock repurchases (5.3 million shares) and $377 million in dividends, and as of May 4, 2024, approximately $3.0 billion remained available for repurchase under all authorized programs, following the Board's approval of a new $2.5 billion stock repurchase program in February 2024 - Returned **$886 million** to shareholders in Q1, comprising **$509 million** in stock repurchases and **$377 million** in dividends[31](index=31&type=chunk) - As of May 4, 2024, the company had approximately **$3.0 billion** available for repurchase under its stock repurchase programs[31](index=31&type=chunk) [Non-GAAP Financial Information](index=5&type=section&id=Non-GAAP%20Financial%20Information) The company utilizes non-GAAP financial measures, such as 'sales growth on a constant currency basis' and 'inventory on a constant currency basis,' to provide investors with a more useful comparison of its performance between periods by excluding items that can affect overall comparability - The company uses non-GAAP measures, including constant currency sales and inventory, for business planning and to provide investors with information to evaluate operating trends[17](index=17&type=chunk) [Forward-looking Statement](index=5&type=section&id=Forward-looking%20Statement) This report contains forward-looking statements concerning future performance, business plans, dividends, and financial outlook, which are subject to numerous risks and uncertainties such as buying strategy, customer trends, competition, and economic conditions, cautioning investors not to place undue reliance on these statements as actual results could differ materially - The press release includes forward-looking statements regarding financial performance, business plans, and shareholder returns, which are subject to risks and uncertainties[19](index=19&type=chunk) - The company cautions investors not to place considerable reliance on forward-looking statements and notes it has no obligation to update them unless required by law[20](index=20&type=chunk)

Investors interested in Retail - Discount Stores stocks are likely familiar with TJX (TJX) and Costco (COST) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, whil ...

The TJX Companies, Inc. (TJX) is likely to register top- and bottom-line growth when it reports first-quarter fiscal 2025 earnings on May 22.The Zacks Consensus Estimate for quarterly revenues is pegged at $12.5 billion, suggesting an increase of 5.8% from the prior-year quarter’s reported figure.The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 87 cents per share, indicating 14.5% growth from the year-ago quarter’s figure. The off-price retailer has a trailin ...