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]

Core Insights - Lowe's Companies, Inc. reported first-quarter fiscal 2025 results with both earnings and net sales surpassing the Zacks Consensus Estimate, although both metrics showed a year-over-year decline [1][3] Financial Performance - Quarterly earnings were $2.92 per share, exceeding the Zacks Consensus Estimate of $2.88, but down 4.6% from $3.06 per share in the same period last year [3] - Net sales reached $20,930 million, slightly above the consensus estimate of $20,924 million, but down 2% year over year [3] - Comparable sales declined by 1.7%, influenced by adverse weather conditions, although there was mid-single-digit growth in Pro and online comparable sales [4] Margin and Cost Analysis - Gross profit decreased by 1.5% year over year to $6.99 billion, while gross margin expanded by 20 basis points to 33.4% [5] - Selling, general and administrative expenses totaled $4.05 billion, up 0.9% year over year, with this metric increasing as a percentage of net sales to 19.3% [5] - Operating income decreased by 6% to $2.49 billion, with the operating margin decreasing by 50 basis points to 11.9% [6] Financial Health - The company ended the quarter with cash and cash equivalents of $3.05 billion and long-term debt of $30.5 billion [7] - Cash flow from operations for the first three months of fiscal 2025 was $3.38 billion, with a dividend payment of $645 million [8] Future Outlook - Management anticipates total sales between $83.5 billion and $84.5 billion for fiscal 2025, with comparable sales expected to be flat to up 1% [11] - Projected operating margin is between 12.3% and 12.4%, with earnings per share expected in the range of $12.15 to $12.40 [11] - Capital expenditures are anticipated to be approximately $2.5 billion for fiscal 2025 [11] Stock Performance - Lowe's shares have declined by 2.5% over the past three months, compared to a 3.1% decline in the industry [12]

Core Viewpoint - Home Depot's first-quarter fiscal 2025 results showed a decline in earnings but an increase in sales, indicating mixed performance amid ongoing customer engagement and seasonal events [1][2]. Financial Performance - Adjusted earnings per share were $3.56, down 3% from $3.67 in the previous year, missing the Zacks Consensus Estimate of $3.59 [2]. - Net sales increased by 9.4% to $39.86 billion from $36.42 billion year over year, surpassing the consensus estimate of $39.14 billion [2]. - Comparable sales decreased by 0.3%, with U.S. comparable sales rising by 0.2% [5]. Customer Engagement - Customer transactions improved by 2.1% year over year, while the average ticket remained flat [5]. - The company is optimistic about its initiatives to enhance customer experience and expand market share in the home improvement sector [4]. Cost and Margin Analysis - Gross profit rose by 8.3% year over year to $13.5 billion, but gross margin declined by 30 basis points to 33.8% [6]. - SG&A expenses increased by 12.9% to $7.5 billion, with SG&A as a percentage of sales growing by 60 basis points to 18.9% [7]. Future Outlook - Home Depot anticipates a 2.8% increase in sales and a 1% rise in comparable sales for fiscal 2025 [10]. - The company estimates a gross margin of 33.4% and an operating margin of 13% for fiscal 2025, with GAAP earnings per share expected to decline by 3% year over year [11][12].