Following my coverage on The TJX Companies (NYSE: TJX ) in Sep'24, in which I recommended a hold rating as the share price has already rallied to a level where I felt the upside wasI take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propensity to be drawn to companies with steady long-te ...

Retailers and industry trade groups are sounding the alarm about how President-elect Donald Trump's proposed tariffs could lead to higher prices. However, officials from TJ Maxx's parent company have a different take, saying the discount retailer may actually benefit.  TJX Companies Inc. CEO Ernie Herrman said on an earnings call with analysts on Wednesday that when there is "chaos" in the market, it usually presents an "opportunity for us."His comment was in reference to a question about whether tariffs co ...

Core Insights - TJX Companies reported better-than-expected earnings for its third quarter, with earnings per share of $1.14, an 11% increase, surpassing the street view of $1.09 [2] - Quarterly sales reached $14.06 billion, a 6% increase, exceeding the analyst consensus estimate of $13.95 billion [2] - The company experienced a 3% increase in consolidated comparable store sales, driven by higher customer transactions, particularly noting a 7% comp increase in the TJX International division [2] Financial Guidance - For the fourth quarter, TJX expects GAAP EPS to be between $1.12 and $1.14, below the consensus estimate of $1.17 [2] - The company anticipates consolidated comparable store sales to increase by 2% to 3% in the fourth quarter [2] - For fiscal year 2025, TJX revised its GAAP EPS forecast to $4.15 – $4.17, slightly above the prior guidance and in line with the consensus of $4.16, with an expected 3% increase in consolidated comparable store sales for the full year [2] Analyst Ratings and Price Targets - Following the earnings announcement, analysts adjusted their price targets for TJX, with Deutsche Bank maintaining a Buy rating and raising the target from $130 to $131 [2] - Evercore ISI Group maintained an Outperform rating and increased the price target from $138 to $142 [2] - Telsey Advisory Group also maintained an Outperform rating with a price target of $134 [2] - The consensus price target for TJX Companies is $12.04 based on the ratings of 25 analysts, with the highest target at $14 from UBS [2]

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 ...

KEY TAKEAWAYSTJX Companies, the operator of discount retailers including TJ Maxx, posted higher-than-expected quarterly results Wednesday and raised its full-year earnings outlook.TJX said it is raising its full-year pretax profit margin outlook and expects a 3% gain in comparable store sales year-over-year.Strong European sales drove gains in its international business, TJX said. TJX Companies (TJX), the operator of discount retailers including TJ Maxx, posted higher-than-expected quarterly results on the ...

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, ...