TJX Q4 revenue rises 9%, beats on strong performance across divisions

Overview

• Off-price retailer's Q4 revenue rose 9%, beating analyst expectations

• Adjusted EPS for Q4 up 16% yr/yr, well above company plan

• Company plans to buy back $2.50 to $2.75 bln of stock in FY27

Outlook

• Company plans to repurchase $2.50 to $2.75 bln of stock in FY27

• TJX expects FY27 comparable sales to rise 2% to 3%

• Company projects FY27 EPS between $4.93 and $5.02

Result Drivers

• COMPARABLE SALES GROWTH - Q4 consolidated comparable sales increased 5%, driven by strong performance across all divisions

• PRETAX PROFIT MARGIN - Q4 pretax profit margin improved to 13.5%, primarily due to lower inventory shrink expense and expense leverage on sales

• LITIGATION SETTLEMENT - A litigation settlement related to credit card interchange fees provided a net benefit, positively impacting SG&A costs

Company press release: ID:nBw4XGJR5a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the discount stores peer group is "buy"

• Wall Street's median 12-month price target for TJX Companies Inc is $170.00, about 7.8% above its February 24 closing price of $157.66

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 28 three months ago

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