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Research Alert: The Tjx Companies: Q1 Fy 27 Beats Estimates; Raises Full-year Guidance

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

TJX delivered Q1 FY 27 (Jan.) normalized EPS of $1.19 (+29% Y/Y), $0.17 above consensus on net sales of $14.3B (+9% Y/Y), $317M above estimates. The off-price retailer demonstrated broad-based strength with consolidated comparable sales growth accelerating to 6% from 3% in the prior year, exceeding management expectations across all divisions. Pretax profit margin expanded 170 bps Y/Y to 12.0% due to gross margin improvement to 31.3% (+180 bps) from higher merchandise margins and expense leverage. TJX raised FY 27 guidance with comparable sales growth outlook increased to 3%-4%, pretax margin to 11.9%-12.0%, and EPS expectations to $5.08-$5.15. The company increased share buyback range to $2.75B-$3.0B, demonstrating continued capital return commitment. We are impressed with continued momentum across brands and improved profitability, though less impressed with raised guidance already reflected in consensus estimates. Shares trade at 31x FY 27 consensus, well above the three-year average forward P/E of 26.6x.

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