Latest news with #TJXCompanies
Globe and Mail
a day ago
- Business
- Globe and Mail
Can TJX's Global Expansion Plan Unlock its Next Growth Phase?
As The TJX Companies, Inc. TJX maintains its stronghold in U.S. off-price retail, the spotlight is now turning to the global expansion strategy as a potential engine for long-term growth. On the first-quarter fiscal 2026 earnings call, TJX emphasized continued momentum in international markets, particularly in Europe, Canada and Australia, and a planned market entry into Spain in 2026 through its TK Maxx banner. Comparable sales in TJX International rose 5% during the quarter, with Australia singled out for 'outstanding' performance and TJX Canada also posting a solid 5% increase. The TJX Companies is also deepening footprint in emerging markets through the joint venture with Grupo Axo in Mexico and a strategic investment in Brands For Less, strengthening its presence in the Middle East. With a well-established global sourcing network spanning more than 100 countries and a highly flexible merchandising model, The TJX Companies appears well-positioned to replicate its U.S. success across geographies. Management reaffirmed that its off-price value proposition, branded goods at everyday low prices, resonates across customer demographics and international markets alike. These attributes, coupled with the brand's adaptability and treasure-hunt appeal, form the foundation for what could be The TJX Companies' next major growth chapter abroad. How Are BURL & COST Approaching Expansion Compared With TJX? While TJX is betting on international expansion for growth, both Burlington Stores, Inc. BURL and Costco Wholesale Corporation COST are scaling through different store expansion strategies. Burlington plans to open 100 net new stores in fiscal 2025, with additional momentum from acquiring 46 JOANN Fabrics leases for fiscal 2026. Burlington's strategy capitalizes on real estate availability and supports the Burlington 2.0 framework for long-term growth and store productivity. Costco is expanding its international footprint with nine warehouse openings during the third quarter of fiscal 2025, on track to reach 914 global locations. This expansion reflects Costco's broader strategy to enhance member experience, strengthen its global footprint and drive long-term value through continued investment in new locations and operational efficiency. TJX's Price Performance, Valuation and Estimates Shares of The TJX Companies have risen 9.6% in the past three months compared with the industry 's growth of 8.9%. From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 27.77X, below the industry's average of 33.53X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for The TJX Companies' current fiscal-year sales and earnings per share implies year-over-year growth of 4.4% and 4.7%, respectively. TJX stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The TJX Companies, Inc. (TJX): Free Stock Analysis Report Burlington Stores, Inc. (BURL): Free Stock Analysis Report
Yahoo
6 days ago
- Business
- Yahoo
Is TJX's 5% Drop Post Q1 Earnings a Caution or Opportunity?
The TJX Companies, Inc. TJX saw its shares drop 5% following the release of its first-quarter fiscal 2026 results on May 21, 2025. This performance marks a notable underperformance compared to the Zacks Retail - Discount Stores industry, the Zacks Retail and Wholesale sector, which slipped 1% and 0.5%, respectively, and the broader S&P 500, which advanced 0.2% during the same period. Image Source: Zacks Investment Research The TJX Companies has delivered relatively lower stock performance compared to some other major players in the discount retail sector, such as Dollar General Corporation DG, Dollar Tree DLTR and Costco Wholesale Corporation COST. During the same period, Dollar General Corporation, Dollar Tree and Costco Wholesale Corporation posted gains of 10.2%, 6.8% and 1.9%, the pullback in TJX shares came despite the company surpassing expectations on both the top and bottom lines. Its fiscal first-quarter results exceeded the Zacks Consensus Estimate for earnings and revenue, reflecting continued strength in customer traffic and solid comparable store sales across all divisions. Interestingly, the stock was trading near record levels ahead of the earnings release. Trading at $128.12 as of June 3, TJX shares are down 5.7% from their 52-week high of $135.85, which was reached on May 20, just a day before the earnings divergence between solid earnings performance and stock price weakness raises a critical question for investors: Is the pullback a short-term overreaction or a long-term buying opportunity? The TJX Companies reported a strong start to fiscal year 2026, demonstrating solid performance across all divisions. Growth was broad-based, fueled by an increase in customer traffic in both U.S. and international markets. As a result, net sales reached $13,111 million, marking a 5% year-over-year increase, consistent on a constant currency basis. Consolidated comparable store sales rose 3%, primarily driven by higher customer transactions. However, earnings per share (EPS) were 92 cents per share, down from 93 cents reported in the year-ago down the performance by segment, comparable store sales grew 2% at Marmaxx (U.S.), 4% at HomeGoods (U.S.), 5% at TJX Canada, and 5% at TJX International (Europe and Australia). Comparable sales increased in both apparel and home categories, underscoring TJX's effective strategy and positioning the company for long-term sustainability with a focus on driving customer transactions. On its last earnings call, TJX highlighted a strong start to the fiscal second quarter and reaffirmed its focus on executing the core fundamentals of its off-price retail model. Management remains confident that the company's broad and compelling assortments, coupled with a resilient business model, will continue to attract value-conscious shoppers, even amid ongoing macroeconomic challenges and tariff-related company expects consolidated comparable store sales growth of 2% to 3% for the fiscal second quarter. Quarterly EPS are projected to range between 97 cents and $1.00, indicating a 1% to 4% increase compared to 96 cents in the prior year's period. For the full fiscal year 2026, TJX anticipates comparable store sales growth of 2% to 3%, consolidated sales to be in the range of $58.1 billion to $58.6 billion, up 3% to 4% with EPS forecasted between $4.34 and $4.43, an increase of 2% to 4% from the previous year's $4.26. TJX Companies remains upbeat about its long-term prospects, grounded in a strong business model and a proven ability to adapt through various retail and economic cycles. The company credits its resilience to the flexibility of its off-price model, the experience of its leadership team, and a well-established global buying network that taps into a wide range of vendors the heart of TJX's strategy is its value proposition, delivering a compelling mix of brand, fashion, quality, and price, which continues to attract a broad and diverse customer base. This broad appeal is supported by a carefully curated mix of brands that sustain steady traffic. Backed by a flexible, global buying and supply chain model and a unique treasure-hunt shopping experience, it remains well-equipped to adapt to changing consumer preferences and capture market share in both stable and challenging economic has also benefited from solid growth in both its physical stores and e-commerce channels. The company is rapidly expanding its footprint in the United States, Europe, Canada, and Australia. In the first quarter of fiscal 2026 alone, TJX added 36 new stores, ending the quarter with a total of 5,121 locations. Further, with an increasing number of consumers resorting to online shopping, The TJX Companies has undertaken several initiatives to boost online sales and strengthen its e-commerce business. The TJX Companies is currently trading at a notable discount compared to its industry peers, making it an appealing option for value-focused investors. As of now, TJX trades at a forward 12-month price-to-earnings (P/E) ratio of 27.75X, which is significantly lower than the industry average of 34.17X. While its valuation is lower than that of Costco Wholesale Corporation, which trades at a significantly higher 54.42X, it remains above other discount retail peers such as Dollar General Corporation and Dollar Tree, which have P/E ratios of 19.48X and 17.89X, respectively. Image Source: Zacks Investment Research The TJX Companies is also trading well above its 50-day and 200-day moving averages, an important bullish technical indicator. This breakout is not just technical but reflects growing market confidence in its growth story. Despite its strengths, TJX faces several challenges that could impact its near-term performance. Rising operating costs, driven by inflationary pressures and wage increases, may put pressure on margins despite ongoing efforts to manage expenses. Additionally, continued trade tensions and tariffs on imports from China and other countries remain a concern, while foreign exchange headwinds could further weigh on of the key near-term risks for TJX is the impact of tariffs on both direct and indirect imports into the U.S. Management expects these pressures to weigh on fiscal second-quarter performance, with gross margin projected to decline by 40 basis points (bps) year over year to 30%. Despite mitigation strategies like pricing adjustments and sourcing shifts, the company forecasts a full-year gross margin contraction of 10 to 20 bps, which could strain profitability even if sales remain TJX's international operations make it vulnerable to currency fluctuations. Management anticipates foreign exchange headwinds will reduce pretax profit margin by 10 to 20 basis points in fiscal 2026, presenting further risks to overall performance. Reflecting cautious sentiment around The TJX Companies, the Zacks Consensus Estimate for EPS has seen downward revisions. Over the past 30 days, the consensus estimate has declined 2 cents to $1.00 for the current quarter and a cent to $4.46 for the fiscal year, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Image Source: Zacks Investment Research Following the post-earnings dip, The TJX Companies presents a mixed picture for investors. While the company delivered better-than-expected results in the fiscal first quarter, driven by solid customer traffic and broad-based sales growth, external headwinds continue to weigh on sentiment. Inflationary cost pressures, rising wages, tariffs and currency fluctuations are expected to pressure margins in the near term. Additionally, recent downward revisions in earnings estimates reflect growing investor caution. That said, TJX's resilient off-price model, strong global footprint, and consistent execution provide a solid foundation for long-term growth. With shares trading at a reasonable valuation relative to peers, investors may consider holding the stock as the company navigates short-term challenges. As macro conditions stabilize and cost pressures ease, TJX could be well-positioned to regain TJX Companies carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The TJX Companies, Inc. (TJX) : Free Stock Analysis Report Dollar General Corporation (DG) : Free Stock Analysis Report Dollar Tree, Inc. (DLTR) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
6 days ago
- Business
- Globe and Mail
Is TJX's 5% Drop Post Q1 Earnings a Caution or Opportunity?
The TJX Companies, Inc. TJX saw its shares drop 5% following the release of its first-quarter fiscal 2026 results on May 21, 2025. This performance marks a notable underperformance compared to the Zacks Retail - Discount Stores industry, the Zacks Retail and Wholesale sector, which slipped 1% and 0.5%, respectively, and the broader S&P 500, which advanced 0.2% during the same period. The TJX Companies' Price Performance Post-Earnings The TJX Companies has delivered relatively lower stock performance compared to some other major players in the discount retail sector, such as Dollar General Corporation DG, Dollar Tree DLTR and Costco Wholesale Corporation COST. During the same period, Dollar General Corporation, Dollar Tree and Costco Wholesale Corporation posted gains of 10.2%, 6.8% and 1.9%, respectively. Notably, the pullback in TJX shares came despite the company surpassing expectations on both the top and bottom lines. Its fiscal first-quarter results exceeded the Zacks Consensus Estimate for earnings and revenue, reflecting continued strength in customer traffic and solid comparable store sales across all divisions. Interestingly, the stock was trading near record levels ahead of the earnings release. Trading at $128.12 as of June 3, TJX shares are down 5.7% from their 52-week high of $135.85, which was reached on May 20, just a day before the earnings announcement. This divergence between solid earnings performance and stock price weakness raises a critical question for investors: Is the pullback a short-term overreaction or a long-term buying opportunity? TJX's Q1 Performance: Key Takeaways The TJX Companies reported a strong start to fiscal year 2026, demonstrating solid performance across all divisions. Growth was broad-based, fueled by an increase in customer traffic in both U.S. and international markets. As a result, net sales reached $13,111 million, marking a 5% year-over-year increase, consistent on a constant currency basis. Consolidated comparable store sales rose 3%, primarily driven by higher customer transactions. However, earnings per share (EPS) were 92 cents per share, down from 93 cents reported in the year-ago quarter. Breaking down the performance by segment, comparable store sales grew 2% at Marmaxx (U.S.), 4% at HomeGoods (U.S.), 5% at TJX Canada, and 5% at TJX International (Europe and Australia). Comparable sales increased in both apparel and home categories, underscoring TJX's effective strategy and positioning the company for long-term sustainability with a focus on driving customer transactions. TJX Reaffirms Growth Outlook Amid Challenges On its last earnings call, TJX highlighted a strong start to the fiscal second quarter and reaffirmed its focus on executing the core fundamentals of its off-price retail model. Management remains confident that the company's broad and compelling assortments, coupled with a resilient business model, will continue to attract value-conscious shoppers, even amid ongoing macroeconomic challenges and tariff-related pressures. The company expects consolidated comparable store sales growth of 2% to 3% for the fiscal second quarter. Quarterly EPS are projected to range between 97 cents and $1.00, indicating a 1% to 4% increase compared to 96 cents in the prior year's period. For the full fiscal year 2026, TJX anticipates comparable store sales growth of 2% to 3%, consolidated sales to be in the range of $58.1 billion to $58.6 billion, up 3% to 4% with EPS forecasted between $4.34 and $4.43, an increase of 2% to 4% from the previous year's $4.26. The TJX Companies' Strategic Strengths TJX Companies remains upbeat about its long-term prospects, grounded in a strong business model and a proven ability to adapt through various retail and economic cycles. The company credits its resilience to the flexibility of its off-price model, the experience of its leadership team, and a well-established global buying network that taps into a wide range of vendors worldwide. At the heart of TJX's strategy is its value proposition, delivering a compelling mix of brand, fashion, quality, and price, which continues to attract a broad and diverse customer base. This broad appeal is supported by a carefully curated mix of brands that sustain steady traffic. Backed by a flexible, global buying and supply chain model and a unique treasure-hunt shopping experience, it remains well-equipped to adapt to changing consumer preferences and capture market share in both stable and challenging economic conditions. TJX has also benefited from solid growth in both its physical stores and e-commerce channels. The company is rapidly expanding its footprint in the United States, Europe, Canada, and Australia. In the first quarter of fiscal 2026 alone, TJX added 36 new stores, ending the quarter with a total of 5,121 locations. Further, with an increasing number of consumers resorting to online shopping, The TJX Companies has undertaken several initiatives to boost online sales and strengthen its e-commerce business. Is TJX Stock's Discounted Valuation Good? The TJX Companies is currently trading at a notable discount compared to its industry peers, making it an appealing option for value-focused investors. As of now, TJX trades at a forward 12-month price-to-earnings (P/E) ratio of 27.75X, which is significantly lower than the industry average of 34.17X. While its valuation is lower than that of Costco Wholesale Corporation, which trades at a significantly higher 54.42X, it remains above other discount retail peers such as Dollar General Corporation and Dollar Tree, which have P/E ratios of 19.48X and 17.89X, respectively. TJX P/E Ratio (Forward 12 Months) The TJX Companies is also trading well above its 50-day and 200-day moving averages, an important bullish technical indicator. This breakout is not just technical but reflects growing market confidence in its growth story. TJX Companies: Navigating Cost Pressures and Global Risks Despite its strengths, TJX faces several challenges that could impact its near-term performance. Rising operating costs, driven by inflationary pressures and wage increases, may put pressure on margins despite ongoing efforts to manage expenses. Additionally, continued trade tensions and tariffs on imports from China and other countries remain a concern, while foreign exchange headwinds could further weigh on profitability. One of the key near-term risks for TJX is the impact of tariffs on both direct and indirect imports into the U.S. Management expects these pressures to weigh on fiscal second-quarter performance, with gross margin projected to decline by 40 basis points (bps) year over year to 30%. Despite mitigation strategies like pricing adjustments and sourcing shifts, the company forecasts a full-year gross margin contraction of 10 to 20 bps, which could strain profitability even if sales remain strong. Additionally, TJX's international operations make it vulnerable to currency fluctuations. Management anticipates foreign exchange headwinds will reduce pretax profit margin by 10 to 20 basis points in fiscal 2026, presenting further risks to overall performance. Downward Estimate Movement of TJX's Earnings Reflecting cautious sentiment around The TJX Companies, the Zacks Consensus Estimate for EPS has seen downward revisions. Over the past 30 days, the consensus estimate has declined 2 cents to $1.00 for the current quarter and a cent to $4.46 for the fiscal year, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Investor Takeaway for TJX Following the post-earnings dip, The TJX Companies presents a mixed picture for investors. While the company delivered better-than-expected results in the fiscal first quarter, driven by solid customer traffic and broad-based sales growth, external headwinds continue to weigh on sentiment. Inflationary cost pressures, rising wages, tariffs and currency fluctuations are expected to pressure margins in the near term. Additionally, recent downward revisions in earnings estimates reflect growing investor caution. That said, TJX's resilient off-price model, strong global footprint, and consistent execution provide a solid foundation for long-term growth. With shares trading at a reasonable valuation relative to peers, investors may consider holding the stock as the company navigates short-term challenges. As macro conditions stabilize and cost pressures ease, TJX could be well-positioned to regain momentum. The TJX Companies carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The TJX Companies, Inc. (TJX): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Dollar Tree, Inc. (DLTR): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report
Yahoo
02-06-2025
- Business
- Yahoo
TJX Companies First Quarter 2026 Earnings: In Line With Expectations
Revenue: US$13.1b (up 5.1% from 1Q 2025). Net income: US$1.04b (down 3.2% from 1Q 2025). Profit margin: 7.9% (down from 8.6% in 1Q 2025). The decrease in margin was driven by higher expenses. EPS: US$0.93 (down from US$0.94 in 1Q 2025). We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) was also in line with analyst expectations. Looking ahead, revenue is forecast to grow 5.4% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the Specialty Retail industry in the US. Performance of the American Specialty Retail industry. The company's share price is broadly unchanged from a week ago. Don't forget that there may still be risks. For instance, we've identified 1 warning sign for TJX Companies that you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
The TJX Companies, Inc. (TJX) 'Had The Best Comps,' Says Jim Cramer
We recently published a list of . In this article, we are going to take a look at where TJX Companies, Inc. (NYSE:TJX) stands against other stocks that Jim Cramer discusses. The TJX Companies, Inc. (NYSE:TJX) is the off-price retailer whose shares have gained a modest 3.8% year-to-date. However, May has been full of trouble for the firm as the stock has lost 6.8% since the firm's first-quarter earnings report. As part of the results, The TJX Companies, Inc. (NYSE:TJX) highlighted its struggles with weak consumer sentiment that other retailers are battling as well. It warned that merchandise it had on order before President Trump's tariff announcements would suffer from price hikes in the second quarter. In his previous remarks, Cramer cautioned viewers to not read too much into the post-earnings share price weakness as the stock always behaves that way. Here are his recent thoughts about The TJX Companies, Inc. (NYSE:TJX): 'Against that, TJX did a solid beat and raise and as always, they guided lower. TJX usually goes down two to three points, but its four today. And then goes down maybe a point tomorrow. And by the end of next week, not his week, it could be at 136. A busy retail store floor with customers trying on apparel and browsing the products. One key aspect of The TJX Companies, Inc. (NYSE:TJX) that Cramer has regularly discussed in his morning show is the firm's ability to benefit from tariffs. The CNBC host believes that the retailer can find itself in a position to buy excess inventory in the US due to over-ordering generated by tariffs. Here's what Cramer said about The TJX Companies, Inc. (NYSE:TJX) in April immediately after the Liberation Day announcements: 'But let me give an example about what I say the market's wrong. You gotta be careful. TJX is the principal beneficiary. Because everyone's gonna take in a lot of inventory because they're trying to get in fast. And then they won't be able to sell everything so they'll give it to TJX. That is what I call a winner. Okay.' Overall, TJX ranks 4th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of TJX, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TJX and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
