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TJX Earnings and Sales Surpass Estimates in Q1, Comp Sales Rise
ZACKS· 2025-05-21 16:00
Core Insights - The TJX Companies, Inc. reported first-quarter fiscal 2026 results with earnings per share (EPS) of 92 cents, slightly down from 93 cents in the previous year, but above the Zacks Consensus Estimate of 90 cents [3] - Net sales reached $13,111 million, a 5% increase year over year, surpassing the Zacks Consensus Estimate of $13,024 million [3] - The company reaffirmed its fiscal 2026 outlook, expecting consolidated comparable store sales growth of 2% to 3% and EPS between $4.34 and $4.43, reflecting a 2% to 4% increase from the previous year's $4.26 EPS [10][11] Financial Performance - Consolidated comparable store sales increased by 3%, driven by higher customer transactions, with specific growth rates of 2% at Marmaxx, 4% at HomeGoods, 5% at TJX Canada, and 5% at TJX International [4] - The pretax profit margin was reported at 10.3%, down 0.8 percentage points from the previous year, while the gross profit margin was 29.5%, down 0.5 percentage points year over year [4][5] - Selling, general and administrative (SG&A) costs as a percentage of sales increased to 19.4%, reflecting a 0.2 percentage point rise due to higher store wage and payroll costs [5] Store Expansion and Financial Health - The company added 36 stores during the first quarter, bringing the total to 5,121 stores [6] - As of the end of the quarter, TJX had cash and cash equivalents of $4,255 million, long-term debt of $2,867 million, and shareholders' equity of $8,503 million [6] - Operating cash flow generated during the quarter was $394 million [6] Shareholder Returns - During the quarter, TJX returned $1 billion to shareholders, including $613 million in stock repurchases and $420 million in dividends [7] - A new stock repurchase program was approved, authorizing up to an additional $2.5 billion in share buybacks, with approximately $2.9 billion remaining under current authorizations [7] Inventory and Market Position - Consolidated inventories per store increased by 7% year over year, indicating strong merchandise availability [8] - The company is well-positioned to deliver fresh assortments to its stores and online platforms throughout spring and summer 2025 [8] Future Guidance - For the second quarter of fiscal 2026, management expects comparable store sales growth of 2% to 3% and a pretax profit margin between 10.4% and 10.5% [11] - The quarterly EPS is projected to range from 97 cents to $1.00, reflecting a year-over-year increase of 1% to 4% [11] - The guidance includes anticipated negative impacts from additional tariff costs related to merchandise commitments made prior to new tariffs announced in March and April 2025 [11][12]
TJX(TJX) - 2026 Q1 - Earnings Call Transcript
2025-05-21 16:00
Financial Data and Key Metrics Changes - Overall comp sales grew 3%, reaching the high end of the company's plan, driven by increased customer transactions across all divisions [7][10] - Pretax profit margin was 10.3%, down 80 basis points but above expectations, while diluted earnings per share were $0.92, exceeding expectations [11][12][13] - Gross margin decreased by 50 basis points primarily due to unfavorable inventory hedges [11] Performance by Business Segment - Marmaxx division saw comp sales increase by 2% with a segment profit margin of 13.7%, down 50 basis points [13][14] - HomeGoods division delivered comp sales growth of 4% with a segment profit margin of 10.2%, up 70 basis points [15] - TJX Canada reported a 5% increase in comp sales, with a segment profit margin of 10.6%, down 170 basis points due to unfavorable foreign exchange [17] - TJX International experienced a 5% increase in comp sales, with a segment profit margin of 4.2%, up 20 basis points [18] Market Data and Key Metrics Changes - Inventory balance increased by 15%, with inventory per store up 7% compared to last year, indicating strong inventory levels [19] - The company is well-positioned to take advantage of market opportunities despite tariff pressures [9][20] Company Strategy and Industry Competition - The company remains confident in its long-term growth strategy, emphasizing its value proposition and flexibility in operations [9][21] - The management highlighted the importance of a diverse product mix and strong vendor relationships to navigate the current economic environment [24][26] - The company aims to capitalize on market share opportunities in both the U.S. and international markets [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current tariff and macroeconomic environment, maintaining a positive outlook for long-term growth [9][20] - The company plans to continue investing in growth while returning cash to shareholders through buybacks and dividends [19][34] Other Important Information - The company is maintaining its full-year guidance for comp sales growth, pretax profit margin, and diluted earnings per share [30][32] - The second quarter is expected to be impacted by tariff pressures, but mitigation efforts are in place [58][60] Q&A Session Summary Question: Inventory availability in the current environment - Management acknowledged the current challenges but expressed confidence in inventory levels and flexibility to adapt to market changes [40][41][42] Question: Comp trends at Marmaxx - Comp trends improved in March and April, with a strong start to the second quarter noted across all divisions [53][56] Question: Margin trajectory for HomeGoods - Management is optimistic about continued margin improvement for HomeGoods, with strong performance expected [88][89] Question: Direct sourcing and income demographics - Direct sourcing is less than 10% of the business, and the company aims to maintain a balanced mix [77][80] - Sales growth was observed across all income demographics, with a slight lean towards lower-income customers [80][82] Question: Gross margin guidance and customer acquisition - Management indicated that gross margin guidance includes mitigation efforts and that customer acquisition is driven by increased transactions [111][114]
Q1 Retailers Report Earnings: TGT Misses, LOW & TJX Beat
ZACKS· 2025-05-21 15:30
Market Overview - U.S. futures are down across the board, with the Dow down 345 points (-0.81%), S&P 500 down 38 points (-0.64%), Nasdaq down 146 points (-0.68%), and Russell 2000 down 21 points (-1.02%) [2] - Major indexes have been flat over the past five trading days, with the Dow showing a slight increase of 1% over the past month, while all indexes are up double-digits [2] Q1 Earnings Reports - Target's Q1 earnings were disappointing, with earnings of $1.30 per share missing the Zacks consensus of $1.65 by 19.75%. Revenues of $23.85 billion were 1.58% short of expectations. The company has cut its growth forecast to negative from slightly positive [3] - Lowe's reported better-than-expected Q1 results, with earnings of $2.92 per share beating the Zacks consensus by 4 cents, and revenues of $20.93 billion slightly exceeding the anticipated $20.92 billion. Shares are up 1.75% in early trading [4] - The TJX Companies modestly beat expectations with earnings of 92 cents per share, 2 cents above estimates, and revenues of $13.11 billion, surpassing the anticipated $13.0 billion. Comparable sales grew by 3% year over year [5] - VF Corp. reported mixed results, with a narrower-than-expected loss of 13 cents per share compared to the estimated 15 cents, but revenues of $2.14 billion fell short of the $2.18 billion consensus. Shares are down 14% due to a challenging macro environment [6] Upcoming Earnings - Urban Outfitters is expected to report solid growth in both top and bottom lines year over year. Additionally, Snowflake and Zoom Communications will also release their quarterly results later today [7]
TJX (TJX) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
ZACKS· 2025-05-21 14:31
Core Insights - TJX reported revenue of $13.11 billion for the quarter ended April 2025, reflecting a year-over-year increase of 5.1% and a surprise of +0.67% over the Zacks Consensus Estimate of $13.02 billion [1] - The earnings per share (EPS) was $0.92, slightly down from $0.93 in the same quarter last year, with an EPS surprise of +2.22% compared to the consensus estimate of $0.90 [1] Financial Performance Metrics - Comparable store sales increased by 3% overall, slightly below the five-analyst average estimate of 3.2% [4] - HomeGoods comparable store sales rose by 4%, compared to the estimated 4.2% [4] - Marmaxx comparable store sales grew by 2%, below the average estimate of 3.2% [4] - TJX International (Europe & Australia) saw a 5% increase in comparable store sales, exceeding the 3.5% estimate [4] - Comparable store sales in TJX Canada increased by 5%, surpassing the 4.3% estimate [4] Store Expansion and Sales - The company opened 36 new stores, exceeding the average estimate of 30 [4] - Total number of stores reached 5,121, slightly above the average estimate of 5,115 [4] - T.J. Maxx in the U.S. maintained 1,338 stores, matching the average estimate [4] - Net sales for Marmaxx were reported at $8.05 billion, slightly below the $8.09 billion estimate, representing a year-over-year increase of +3.9% [4] - Net sales for TJX International were $1.66 billion, exceeding the $1.60 billion estimate, with a year-over-year change of +8.1% [4] - Net sales for TJX Canada were $1.14 billion, aligning with the estimate, reflecting a +2.8% year-over-year change [4] - HomeGoods net sales reached $2.25 billion, surpassing the $2.21 billion estimate, with an +8.4% year-over-year change [4] Stock Performance - TJX shares returned +7.3% over the past month, compared to the Zacks S&P 500 composite's +12.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]
TJX Companies delivers solid quarterly results, maintains full year guidance
Proactiveinvestors NA· 2025-05-21 14:17
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 (TJX) Q1 Earnings and Revenues Top Estimates
ZACKS· 2025-05-21 13:46
Company Performance - TJX reported quarterly earnings of $0.92 per share, exceeding the Zacks Consensus Estimate of $0.90 per share, but down from $0.93 per share a year ago, representing an earnings surprise of 2.22% [1] - The company posted revenues of $13.11 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 0.67% and up from $12.48 billion year-over-year [2] - Over the last four quarters, TJX has consistently surpassed consensus EPS and revenue estimates [2] Stock Outlook - TJX shares have increased approximately 11.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 1% [3] - The current consensus EPS estimate for the upcoming quarter is $1.02 on revenues of $14.07 billion, and for the current fiscal year, it is $4.44 on revenues of $58.84 billion [7] Industry Context - The Retail - Discount Stores industry, to which TJX belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact TJX's stock performance [5][6]
TJX(TJX) - 2026 Q1 - Quarterly Results
2025-05-21 13:16
Financial Performance - Q1 FY26 net sales reached $13.1 billion, a 5% increase compared to Q1 FY25[2] - Consolidated comparable sales increased by 3%, driven by an increase in customer transactions[4] - Q1 pretax profit margin was 10.3%, above the company's plan but down from 11.1% in the previous year[7] - Q1 diluted earnings per share were $0.92, slightly below $0.93 in Q1 FY25[2] - Net sales for the thirteen weeks ended May 3, 2025, were $13,111 million, an increase of 5.1% from $12,479 million for the same period in 2024[28] - Net income for the same period was $1,036 million, a decrease of 3.2% compared to $1,070 million in the prior year[28] - Diluted earnings per share were $0.92, down from $0.93 in the previous year[28] - Total segment profit for the thirteen weeks ended May 3, 2025, was $1,531 million, compared to $1,493 million in the same period last year, marking a 2.5% increase[36] Shareholder Returns - The company returned $1.0 billion to shareholders in Q1 through share repurchases and dividends[10] - The company returned $1 billion to shareholders, repurchasing 5.1 million shares at a cost of $613 million and paying $420 million in dividends during the first quarter[37] - The company announced a new stock repurchase program authorizing the repurchase of up to an additional $2.5 billion of common stock[37] Inventory and Assets - Total inventories as of May 3, 2025, were $7.1 billion, up from $6.2 billion a year earlier[9] - Merchandise inventories increased to $7,127 million from $6,218 million year-over-year, reflecting a rise of 14.6%[30] - Total assets grew to $31,858 million, up from $29,679 million, representing an increase of 7.3%[30] Future Guidance - For Q2 FY26, the company expects consolidated comparable sales to increase by 2% to 3%[13] - Full year FY26 guidance maintains expectations for comparable sales growth of 2% to 3% and diluted EPS in the range of $4.34 to $4.43[14] Currency Impact - The impact of foreign currency exchange rates had a neutral effect on net sales growth but negatively impacted diluted EPS by $0.02[18] Store Expansion - The company increased its store count by 36 to a total of 5,121 stores during the quarter[15] Cash Flow - Cash and cash equivalents at the end of the period were $4,255 million, down from $5,059 million, a decrease of 15.8%[34] - The company reported a net cash provided by operating activities of $394 million, significantly lower than $737 million in the prior year[34]
TJX Gears Up For Q1 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts
Benzinga· 2025-05-21 06:38
Core Insights - TJX Companies, Inc. is expected to report first-quarter earnings of 91 cents per share, a decrease from 93 cents per share in the same period last year [1] - The projected quarterly revenue is $13.03 billion, up from $12.48 billion a year earlier [1] Financial Performance - In the fourth quarter of FY25, TJX reported sales of $16.4 billion, remaining flat year-on-year and exceeding analyst expectations of $16.20 billion [2] - TJX shares experienced a slight decline of 0.1%, closing at $134.93 [2] Analyst Ratings - TD Securities analyst John Kernan maintained a Buy rating and raised the price target from $140 to $142 [7] - JP Morgan analyst Matthew Boss maintained an Overweight rating and increased the price target from $127 to $130 [7] - Wells Fargo analyst Ike Boruchow maintained an Equal-Weight rating and raised the price target from $115 to $120 [7] - Citigroup analyst Paul Lejuez upgraded the stock from Neutral to Buy, increasing the price target from $128 to $140 [7] - BMO Capital analyst Simeon Siegel maintained an Outperform rating and raised the price target from $133 to $145 [7]
Is TJX (TJX) a Solid Growth Stock? 3 Reasons to Think "Yes"
ZACKS· 2025-05-20 18:16
Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with TJX being highlighted as a strong candidate due to its favorable growth metrics and Zacks Rank [2][9]. Group 1: Earnings Growth - Earnings growth is a critical factor for investors, with double-digit growth being particularly desirable as it indicates strong future prospects [4]. - TJX has a historical EPS growth rate of 49.6%, with a projected EPS growth of 4.1% for the current year, surpassing the industry average of 2.9% [5]. Group 2: Cash Flow Growth - Cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [6]. - TJX's year-over-year cash flow growth stands at 12.2%, exceeding the industry average of 10.6% [6]. - The company's annualized cash flow growth rate over the past 3-5 years is 7.6%, compared to the industry average of 4.6% [7]. Group 3: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements, making them an important consideration for investors [8]. - The current-year earnings estimates for TJX have been revised upward, with the Zacks Consensus Estimate increasing by 0.1% over the past month [8]. Group 4: Overall Positioning - TJX has achieved a Zacks Rank of 2 (Buy) and a Growth Score of A, positioning it well for potential outperformance in the market [9][10].
Marshalls to Launch "The Upgrade Lounge" at JFK Airport -- Providing Premium Perks for Every Traveler
Prnewswire· 2025-05-20 13:08
Core Insights - Marshalls is launching The Upgrade Lounge at JFK Airport's Terminal 4 from May 21 to May 28, providing a premium travel experience without the need for first-class tickets or fees [1][3][7] - The initiative aims to make high-quality travel experiences accessible to all, reflecting Marshalls' commitment to offering better quality, experiences, and value [1][4] Company Initiatives - The Upgrade Lounge will feature complimentary amenities, a chic atmosphere, and a Beauty Bar with name-brand products, enhancing the travel experience for all visitors [6][7] - The Upgrade Shop, curated by TV personality Amanda Batula, will showcase fashionable travel essentials available for purchase on Marshalls.com, extending the lounge experience online [4][5] Market Context - The launch coincides with Memorial Day weekend, a peak travel time, where the TSA reported over seven million travelers last year, highlighting the demand for improved airport experiences [3] - A survey conducted by Marshalls revealed that two-thirds of air travelers desire upgrades to their airport experience, indicating a significant market opportunity for accessible premium services [3][8] Brand Positioning - Marshalls positions itself as a leading off-price retailer, with over 1,200 stores and a strong online presence, emphasizing its mission to provide stylish and high-quality products at amazing prices [9] - The Upgrade Lounge reflects the brand's philosophy of making quality and style more accessible, aligning with its overall marketing strategy [4][5]