Why TJX Companies' Stock Is Sinking Today

Core Viewpoint - TJX Companies reported first-quarter results that exceeded Wall Street expectations in terms of sales and earnings, but the company's guidance for future performance has led to a decline in stock price [1][3][6] Financial Performance - TJX posted earnings per share (EPS) of $0.92 on revenue of$13.11 billion, surpassing analyst estimates of $0.91 EPS on$13.03 billion in sales [3] - Revenue increased by 5% year over year, while EPS declined by approximately 1% compared to the same quarter last year [4] Same-Store Sales - Same-store sales (comps) rose by 3% year over year during the first quarter, with management indicating solid momentum for the second quarter [4] Future Guidance - For the second quarter, TJX expects same-store sales to increase between 2% and 3%, with a projected pretax net income margin of 10.4% to 10.5%, down from 10.9% in the same quarter last year [5] - Full-year same-store sales are also expected to rise between 2% and 3%, with a pretax profit margin projected between 11.3% and 11.4%, down from 11.5% last year; EPS is anticipated to be between $4.34 and$4.43 [5] Analyst Expectations - The company's earnings guidance suggests annual growth between 2% and 4%, which is below the average analyst expectation of $4.49 EPS for the year [6]