TJX Companies Reports Strong Q1 Performance and Raises Annual Profit Forecast

Key Points

• TJX Companies reported Q1 EPS of $0.93
• beating analyst estimates of $0.87.
• The company raised its annual profit forecast to $4.03 to $4.09 per share.
• TJX plans to repurchase $2 billion to $2.5 billion in fiscal 2025 and expects 2%-3% growth in comparable store sales.

In this news

TJX Companies, the parent company of TJ Maxx, reported impressive first-quarter results, surpassing analysts' expectations and raising its annual profit forecast. The company's earnings per share (EPS) for the quarter were $0.93, beating the analyst estimate of $0.87. Revenue for the quarter rose by 5.9% to $12.48 billion, driven by a 3% increase in comparable store sales and improved gross profit margins of 30.0%. This strong performance is attributed to increased customer transactions and the appeal of off-price retail, which has attracted both wealthy shoppers and budget-conscious consumers.

The company also demonstrated robust cash flow and shareholder returns, holding $5.1 billion in cash and generating $737 million in operating cash flow. TJX returned $886 million to shareholders during the quarter. Looking ahead, TJX plans to repurchase $2 billion to $2.5 billion in fiscal 2025 and expects overall comparable store sales growth of 2%-3% for the year. For the second quarter, the company anticipates comparable store sales to increase by 2%-3% and projects an EPS range of $0.88 to $0.90.

TJX's strong performance and positive outlook have been well-received by the market, with shares reaching an all-time high following the earnings report. The company's ability to attract a diverse customer base with its off-price product categories and effective inventory management has positioned it well for continued growth. As a result, TJX has raised its annual earnings estimates to $4.03 to $4.09 per share, up from the previous forecast of $3.94 to $4.02 per share, reflecting confidence in sustained demand and operational efficiency.