Key Takeaways TJX's Q1 selling, general and administrative rose to 19.4% of sales, mainly due to higher store wages. Q2 gross margin is projected to fall 40 bps due to tariffs on goods already in transit. TJX expects fiscal 2026 gross margin of 30.4-30.5%, down from the prior year's level.The TJX Companies (TJX) is feeling the strain of elevated operating costs, particularly in wages and sourcing. In the first quarter of fiscal 2026, selling, general and administrative (SG&A) expenses rose to 19.4% of sal ...

Core Viewpoint - Five Below Inc. reported strong earnings and raised its full-year guidance, leading to a significant increase in stock price, but investors may be cautious about chasing the stock at current levels [1][7]. Financial Performance - Net sales for Five Below reached $970.5 million, marking a 19.5% year-over-year increase from $811.9 million in the same quarter last year [2]. - Comparable sales increased by 7.1% [2]. - Earnings per share (EPS) were reported at 86 cents, exceeding expectations of 83 cents and representing a 43% year-over-year increase [3]. Guidance and Outlook - The company raised its full-year revenue outlook to between $4.33 billion and $4.42 billion, increasing the low end of its previous guidance [4]. - The low end of the full-year EPS outlook was raised to $4.25 from $4.10 [4]. - Five Below plans to open an additional 30 new stores, building on the 50 opened in the last quarter, which is expected to drive a 7% to 9% increase in comparable store sales [5]. Tariff Impact and Strategy - Concerns about tariffs affecting inventory sourced from China were acknowledged, with the company reducing goods sourced from China by approximately 10% for the second half of 2025 [6]. Stock Performance and Analyst Ratings - Five Below stock has increased over 57% in the last 30 days, significantly above its consensus price target of $103.45 [7]. - The stock is currently trading near its 52-week high, with a forward P/E ratio of around 26x, indicating it may be expensive compared to its historical valuation [8]. - Analysts have raised their price targets, with the most bullish forecast from UBS Group increasing from $110 to $160 [11]. Investment Considerations - The stock's relative strength indicator (RSI) is around 74, suggesting overbought conditions, and investors may want to wait for a pullback before buying [9]. - Current price forecasts indicate a potential downside of 11.74% from the current price of $127.35, with an average target of $112.40 [10].

Core Perspective - TJ Maxx launches "You Sponsored by TJ Maxx," a program aimed at providing sponsorship opportunities to everyday women, addressing the disparity in sponsorship support [1][4][8] Group 1: Program Overview - The program will award 10 women custom sponsorship deals to enhance their visibility, connections, and opportunities [2][6] - Each recipient will be paired with one of five influential Co-Sponsors from various fields, including athletics, arts, fashion, and entrepreneurship [2][5] Group 2: Key Findings from Survey - A TJ Maxx survey indicates that fewer than 10% of women currently have a sponsor, while 75% believe sponsorship would help them embrace their authentic selves [1][10] - The survey was conducted with 2,000 U.S. women aged 18-65, highlighting the need for increased support for women in various professional fields [10] Group 3: Sponsorship Benefits - Recipients will receive $20,000 in funding to support their personal or professional endeavors [6] - The program includes one-on-one mentorship with Co-Sponsors and introductions to their networks to facilitate further opportunities [6] - Visibility will be enhanced through storytelling on TJ Maxx's social media platforms, reaching millions of followers [6] Group 4: Historical Context - The initiative builds on the Maxx You Project, which has supported over 200,000 women since its inception in 2017, providing resources for women to pursue their authentic lives [11]

Citi Trends (CTRN) Q1 2026 Earnings Call June 03, 2025 09:00 AM ET Company Participants Nitza McKee - Senior Associate - IRKenneth Seipel - CEO & DirectorHeather Plutino - CFO & Executive VP Conference Call Participants Michael Baker - Managing Director, Senior Research AnalystWill Forsberg - Associate Analyst Operator Greetings, and welcome to the Citi Trends First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow t ...

Financial Data and Key Metrics Changes - Total sales grew by 6% compared to 11% growth last year, while comp sales were flat after 2% growth last year, both metrics at the midpoint of guidance [7][10] - EBIT margin increased by 30 basis points, and adjusted EPS was up 18% over last year despite flat comp sales [8][28] - Gross margin rate for Q1 was 43.8%, an increase of 30 basis points versus last year, driven by a 20 basis point increase in merchandise margin and a 10 basis point decrease in freight expense [26] Business Line Data and Key Metrics Changes - Comp store sales were flat, with a notable deceleration from Q4 to Q1, affecting all demographic trade areas [17][68] - The beauty business was the best performing category in Q1, while overall performance across categories was fairly broad based [97] Market Data and Key Metrics Changes - Comparable store inventories were down 8% versus the end of Q1 2024, with reserve inventory up 31% compared to last year, reflecting strategic acquisitions to mitigate tariff impacts [28][76] - The Southeast Region outperformed the chain, while the Midwest Region trailed due to unfavorable weather [95] Company Strategy and Development Direction - The company is focused on its "Burlington Two Point O" strategy, emphasizing merchandising capabilities and store experience improvements [21][105] - Plans to open 100 net new stores in 2025, with a significant portion expected to open in the latter half of the year [23][115] - The company is actively managing tariff impacts by seeking margin and expense savings opportunities [9][54] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about external uncertainties, particularly regarding tariffs and the state of the consumer, which could impact sales trends [10][36] - The company has a playbook to manage through economic slowdowns and inflation, focusing on providing value to customers [19][84] - Management remains optimistic about long-term growth potential despite short-term challenges [20][88] Other Important Information - The company ended Q1 with approximately $1.1 billion in total liquidity, including $371 million in cash [29] - A new two-year $500 million share repurchase authorization was approved by the Board of Directors [30] Q&A Session Summary Question: Impact of tariffs on off-price retail - Management indicated that disruption from tariffs could create both risks and opportunities for off-price retailers, with recent tariff reductions potentially leading to attractive buying opportunities [40][46] Question: Monthly comp sales trend in Q1 - Comp sales were down about 2% in February, improved in March and April, with May month-to-date trends similar to the March-April combined period [58][61] Question: Comp performance by demographic - Lower income trade areas outperformed the chain, and Hispanic consumer trends showed relative strength, although border stores underperformed [70][72] Question: Freight costs and guidance - Guidance is contingent on holding ocean freight costs to contracted rates, with secured truck and intermodal capacity at favorable rates [89][91] Question: Marketing programs update - The marketing strategy has evolved to focus on value, with an integrated approach to enhance customer experience and store layout [102][105]

Core Viewpoint - Burlington Stores, Inc. reported a 6% increase in total sales for the first quarter of Fiscal 2025, with comparable store sales remaining flat, while adjusted EPS guidance for the full year is maintained at $8.70 to $9.30, excluding bankruptcy-related lease expenses [1][4][8]. Financial Performance - Total sales reached $2,500 million, a 6% increase compared to the first quarter of Fiscal 2024, following an 11% increase last year [4][5]. - Comparable store sales were flat, consistent with the midpoint of guidance, and up from a 2% increase last year [4][5]. - Net income was $101 million, translating to diluted EPS of $1.58, compared to $79 million or $1.22 per share in the same quarter last year [4][20]. - Adjusted EPS increased by 18% to $1.67, exceeding guidance [4][5]. Margins and Expenses - Adjusted EBIT margin increased by 30 basis points, outperforming guidance [4][5]. - Gross margin rate improved to 43.8% from 43.5% year-over-year, with merchandise margin expanding by 20 basis points [5]. - SG&A as a percentage of net sales decreased to 34.7% from 35.0% in the prior year, while adjusted SG&A was 26.8% compared to 27.1% [5]. Inventory and Liquidity - Merchandise inventories rose by 15% to $1,315 million, while comparable store inventories decreased by 8% [6]. - The company ended the quarter with $1,119 million in liquidity, including $371 million in unrestricted cash [9]. Outlook - For Fiscal Year 2025, the company expects total sales to increase by 6% to 8%, with comparable store sales projected to rise by 0% to 2% [7][8]. - Capital expenditures are anticipated to be approximately $950 million, with plans to open around 100 net new stores [8]. - Adjusted EPS is forecasted to be in the range of $8.70 to $9.30, compared to $8.35 last year [8].

Financial Data and Key Metrics Changes - Total sales increased by 3% to $5 billion, with comparable store sales remaining flat compared to the previous year [5] - Earnings per share rose to $1.47 from $1.46, while net income decreased to $479 million from $488 million year-over-year [5] - Operating margin remained flat at 12.2% year-over-year [5][10] Business Line Data and Key Metrics Changes - The dd's discount brand continued strong momentum with solid sales and operating profits [6] - Cosmetics emerged as the strongest merchandise area during the quarter [5] Market Data and Key Metrics Changes - Geographic trends showed broad-based performance, with the Southeast region performing the best [5] - Total consolidated inventories increased by 8% year-over-year, with average store inventories up by 4% [6] Company Strategy and Development Direction - The company plans to open approximately 90 new stores in 2025, including about 80 Ross and 10 dd's discount locations [7] - The company is focused on maintaining a pricing umbrella below traditional retailers to deliver value to customers, despite expected inflationary pressures [8] - Management expressed a cautious outlook for the second half of the fiscal year due to uncertainties in consumer demand and trade policies [9] Management's Comments on Operating Environment and Future Outlook - Management noted a sequential improvement in comparable sales throughout the quarter, despite a slow start in February [9] - The company withdrew its previously provided annual guidance due to too many unknown variables affecting visibility [9] - Management emphasized the importance of a flexible business model to navigate through uncertain times [15] Other Important Information - The company repurchased 2 million shares of common stock for $263 million during the first quarter [11] - The projected earnings per share for the second quarter is in the range of $1.40 to $1.55, including a cost impact of $0.11 to $0.16 from tariffs [12] Q&A Session Summary Question: Can you elaborate on the cadence of comps and drivers of improvement? - Management noted broad-based improvement across merchandise categories, with April showing strong performance [19] Question: What strategies are in place to mitigate tariffs? - Management discussed working with vendors for better costing, careful price increases, and utilizing closeouts to mitigate tariff impacts [20] Question: How do you expect the gross margin hit from tariffs to evolve? - The second quarter impact includes costs from orders already in transit when tariffs were announced, and management is cautious about predicting the back half of the year [25][26] Question: What are your thoughts on inventory availability and sourcing? - Management believes there will be availability of closeouts, but there may be some receipt risk due to production halts in China [31][32] Question: How is the branded strategy performing? - Management is pleased with the execution of the branded strategy, which is now expected to have no further margin headwinds [52][53] Question: What are your expectations for pricing elasticity? - Management indicated that elasticity will depend on the category and is being strategic about pricing changes [58] Question: How are you planning to shift sourcing away from China? - Management acknowledged the challenges in shifting sourcing quickly but emphasized flexibility in product assortment [64][89]

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]

Group 1 - Ross Stores is expected to announce fiscal first-quarter earnings on May 22, 2025, with analysts predicting earnings of $1.43 per share and revenue of $4.96 billion, reflecting a 3% decrease in earnings and a 2% increase in sales year-over-year [1] - The company has a market capitalization of $51 billion and reported $21 billion in revenue over the last 12 months, resulting in an operating profit of $2.6 billion and net income of $2.1 billion [2] - Ross anticipates comparable store sales to be flat to a 3% decrease for the first quarter due to cautious macroeconomic conditions, with full-year EPS expected to be between $5.95 and $6.55, slightly down from $6.32 the previous year [2] Group 2 - Historical data shows that Ross Stores' stock has risen 50% of the time after earnings announcements, with a median one-day gain of 3.6% and a maximum increase of 10% [1][4] - Over the past five years, there have been 20 earnings data points, with positive one-day returns occurring approximately 50% of the time, increasing to 73% when considering the last three years [6] - The correlation between one-day and five-day post-earnings returns can provide a less risky trading strategy, particularly if a strong correlation is identified [4][5]

Marshalls is making a high-quality travel experience accessible to all with a first-of-its-kind pop-up lounge in Terminal 4 of the New York City airport — no tickets, fees, or status required.FRAMINGHAM, Mass., May 20, 2025 /PRNewswire/ -- Marshalls (NYSE: TJX) is elevating travel just in time for Memorial Day weekend with the debut of The Upgrade Lounge. Open to travelers from May 21–28, this immersive pop-up lounge delivers a premium airport experience—no first-class ticket required. Rooted in the belief ...