Why Is TJX (TJX) Down 0.7% Since Last Earnings Report?

Core Viewpoint - The TJX Companies, Inc. has shown strong performance in its recent earnings report, with both earnings and revenues exceeding estimates, indicating potential for continued growth despite recent stock performance trends [3][4]. Financial Performance - For Q4 fiscal 2026, TJX reported earnings per share (EPS) of $1.43, a 16% increase year-over-year, surpassing the Zacks Consensus Estimate of $1.38 [4]. - Net sales reached $17,743 million, reflecting a 9% year-over-year increase and exceeding the Zacks Consensus Estimate of $17,453 million [4]. - The adjusted pretax profit margin improved to 12.2%, up 0.6 percentage points from the previous year, driven by lower inventory shrink expenses and stronger sales [7]. - The adjusted gross profit margin was 31.1%, also up 0.6 percentage points year-over-year, primarily due to an elevated merchandise margin [8]. Segment Performance - In the Marmaxx division (U.S.), net sales were $10,655 million, up 7% year-over-year [5]. - HomeGoods (U.S.) net sales increased to $3,093 million, an 8% rise year-over-year [5]. - TJX Canada reported net sales of $1,612 million, an 11% increase from the previous year [5]. - TJX International (Europe & Australia) saw net sales of $2,383 million, up 15% year-over-year [5]. - Consolidated comparable store sales rose by 5%, with increases across all divisions [6]. Shareholder Returns - In Q4, TJX returned $1.26 billion to shareholders, including $784 million for share repurchases and $472 million in dividends [10]. - For fiscal 2026, total shareholder returns amounted to $4.3 billion, with $2.5 billion spent on repurchasing 18.5 million shares and $1.8 billion in dividends [10]. - The company plans to increase its quarterly dividend to 48 cents per share, a 13% increase over the previous dividend [10]. Future Outlook - For fiscal 2027, TJX projects consolidated comparable sales growth of 2% to 3%, a pretax profit margin of 11.7% to 11.8%, and EPS in the range of $4.93 to $5.02 [12]. - The first quarter of fiscal 2027 is expected to see similar sales growth and an EPS of 97 to 99 cents [12]. Financial Health - As of fiscal 2026, TJX had a total store count of 5,214, cash and cash equivalents of $6.2 billion, long-term debt of $1.9 billion, and shareholders' equity of $10.2 billion [9]. - The company generated an operating cash flow of $6.9 billion in fiscal 2026 [9].