TJX Companies (TJX) stock jumped higher Wednesday after the off-price retailer beat sales and earnings expectations for its fiscal first quarter and raised its outlook for the full year.
In the thirteen weeks ended May 4, the parent company of TJ Maxx, Marshalls, HomeGoods, Homesense and Sierra saw revenue increase 5.9% year-over-year to $12.5 billion. Earnings per share (EPS) were up 22.4% from the year prior to 93 cents.
"I am very pleased with our first-quarter performance," TJX CEO Ernie Herrman said in a statement. “Overall comparable store sales increased 3%, at the high-end of our plan, and both profitability and earnings per share were well above our expectations."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
TJX's impressive performance was driven by strong same-store sales in the U.S. across all of its brands and geographies, including 2% combined growth at TJ Maxx, Marshalls and Sierra and 4% collective growth at HomeGoods and Homesense.
"We saw comparable sales growth at every division entirely driven by customer transactions, which underscores the strength of our value proposition," Herrman said. "This also gives us confidence in our ability to gain market share across all of our geographies."
The first-quarter results satisfied analysts' expectations. According to Yahoo Finance, Wall Street had anticipated net sales of $12.5 billion and EPS of $0.87.
As a result of its strong performance in the first quarter, the discount retailer raised its EPS outlook for the full year of fiscal 2025. It now anticipates EPS in the range of $4.03 to $4.09, up from its previous range of $3.94 to $4.02.
"The second quarter is off to a good start and we see numerous opportunities for our business for the balance of the year that we plan to pursue," Herrman said. "Longer term, we are excited about the potential we see to drive customer transactions and sales, capture additional market share, and increase the profitability of TJX."
Where does TJX stock stand with analysts?
Analysts are generally optimistic toward the consumer discretionary stock. According to S&P Global Market Intelligence, the consensus analyst target price for TJX stock is $111.38, representing implied upside of about 7% to current levels. Meanwhile, the consensus recommendation is Buy.
Speaking for the bulls is William Blair analyst Dylan Carden, who has an Outperform (Buy) rating on TJX stock. "We believe shares continue to offer compelling value from a total return standpoint, with 1.5% dividend yield, in good position to take out roughly 5% of the market cap through buybacks, and steady earnings growth in the high single digits over the next two years," Carden says.
Related Content
-
Stocks Hit Fresh Highs Ahead of the Fed As Earnings Pump Optimism: Stock Market TodaySHW and UNH were two of the best Dow Jones stocks Tuesday, thanks to solid earnings reports, and MSFT closed with a $4 trillion market cap.
-
Selling Your Haunted House? What You Have to Tell Buyers (and What You Don’t)You don’t need ghosts to spook buyers, sometimes a home’s past is enough. Here’s what sellers should know about disclosure laws, pricing and perception when a property has a haunted history.
-
Stocks Hit Fresh Highs Ahead of the Fed As Earnings Pump Optimism: Stock Market Today
SHW and UNH were two of the best Dow Jones stocks Tuesday, thanks to solid earnings reports, and MSFT closed with a $4 trillion market cap.
-
Targa Resources, Take-Two Interactive, Boston Scientific: Why Experts Rate These Stocks at Strong BuyWall Street is highly bullish on these three high-quality stocks.
-
Debunking Three Myths About Defined Outcome ETFs (aka Buffered ETFs)Defined outcome ETFs offer a middle ground between traditional equity and fixed-income investments, helping provide downside protection and upside participation.
-
This Is Why Judge Judy Says Details Are Important in Contracts: This Contract Had HolesA couple's disastrous experience with reclaimed wood flooring led to safety hazards and a lesson in the critical importance of detailed contracts.
-
US-China Trade Hopes Send Stocks to New Highs: Stock Market TodayApple and Microsoft are on track to join Nvidia in the $4 trillion market cap club.
-
A Lesson From the School of Rock (and a Financial Adviser) as the Markets Go Around and AroundIt's hard to hold your nerve during a downturn, but next time the markets take a tumble, remember this quick rock 'n' roll tutorial and aim to stay invested.
-
I'm a Financial Pro: This Is How You Can Guide Your Heirs Through the Great Wealth TransferFocus on creating a clear estate plan, communicating your wishes early to avoid family conflict, leaving an ethical will with your values and wisdom and preparing them practically and emotionally.
-
To Reap the Full Benefits of Tax-Loss Harvesting, Consider This Investment Strategist's StepsTax-loss harvesting can offer more advantages for investors than tax relief. Over the long term, it can potentially help you maintain a robust portfolio and build wealth.
