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."
Sign up for Kiplinger’s Free E-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
-
Earnings Season: Live Updates and CommentaryFourth-quarter earnings season is getting underway, and Wall Street is keeping a close eye on both results and guidance.
-
'Pickleball Tax' Battle Heads to CourtState Tax The pickleball controversy continues as a nonprofit organization takes legal action against “illegal” taxes.
-
How to Organize Your Financial Life (and Paperwork)To simplify the future for yourself and your heirs, put a financial contingency plan in place. The peace of mind you'll get is well worth the effort.
-
Financial Confidence? It's Just Good Planning, Boomers SayBaby Boomers may have hit the jackpot money-wise, but many attribute their wealth to financial planning and professional advice rather than good timing.
-
Will You Be Able to Afford Your Dream Retirement?You might need to save more than you think you do. Here are some expenses that might be larger than you expect, along with ways to ensure you save enough.
-
Three Steps to Simplify Paying Your Taxes in RetirementOnce you retire, how you pay some of your taxes can change. Here's how to get a handle on them so you don't run afoul of the IRS and face penalties.
-
More SECURE 2.0 Retirement Enhancements Kick in This YearSaving for retirement gets a boost with these SECURE 2.0 Act provisions that are starting in 2025.
-
Saving for Your Emergency Fund: As Easy as 1-3-6An emergency fund that can cover six months' worth of expenses is far easier to build if you focus on smaller goals at first.
-
Stock Market Today: Dow Slides 697 Points on Super-Hot Jobs DataWhen the December nonfarm payrolls report hit the tape, there was no question which way stocks would go at Friday's opening bell.
-
Blowout December Jobs Report Puts Rate Cuts on Ice: What the Experts Are SayingJobs Report The strongest surge in hiring since March keeps the Fed on hold for now.
