×
S&P 500   3,802.97 (-0.49%)
DOW   30,923.97 (-0.07%)
QQQ   283.00 (-0.19%)
AAPL   139.22 (+1.30%)
MSFT   259.49 (+1.17%)
META   163.59 (+1.81%)
GOOGL   2,226.91 (-0.59%)
AMZN   108.94 (+1.43%)
TSLA   671.16 (-3.84%)
NVDA   154.01 (-3.64%)
NIO   21.53 (-3.71%)
BABA   115.48 (-1.10%)
AMD   76.95 (-4.74%)
MU   55.65 (-3.82%)
CGC   3.52 (-2.49%)
T   20.77 (+0.78%)
GE   64.08 (-2.73%)
F   11.47 (-2.88%)
DIS   95.20 (-0.75%)
AMC   13.44 (+0.45%)
PFE   50.94 (+0.55%)
PYPL   71.10 (-1.00%)
NFLX   176.69 (-1.62%)
S&P 500   3,802.97 (-0.49%)
DOW   30,923.97 (-0.07%)
QQQ   283.00 (-0.19%)
AAPL   139.22 (+1.30%)
MSFT   259.49 (+1.17%)
META   163.59 (+1.81%)
GOOGL   2,226.91 (-0.59%)
AMZN   108.94 (+1.43%)
TSLA   671.16 (-3.84%)
NVDA   154.01 (-3.64%)
NIO   21.53 (-3.71%)
BABA   115.48 (-1.10%)
AMD   76.95 (-4.74%)
MU   55.65 (-3.82%)
CGC   3.52 (-2.49%)
T   20.77 (+0.78%)
GE   64.08 (-2.73%)
F   11.47 (-2.88%)
DIS   95.20 (-0.75%)
AMC   13.44 (+0.45%)
PFE   50.94 (+0.55%)
PYPL   71.10 (-1.00%)
NFLX   176.69 (-1.62%)
S&P 500   3,802.97 (-0.49%)
DOW   30,923.97 (-0.07%)
QQQ   283.00 (-0.19%)
AAPL   139.22 (+1.30%)
MSFT   259.49 (+1.17%)
META   163.59 (+1.81%)
GOOGL   2,226.91 (-0.59%)
AMZN   108.94 (+1.43%)
TSLA   671.16 (-3.84%)
NVDA   154.01 (-3.64%)
NIO   21.53 (-3.71%)
BABA   115.48 (-1.10%)
AMD   76.95 (-4.74%)
MU   55.65 (-3.82%)
CGC   3.52 (-2.49%)
T   20.77 (+0.78%)
GE   64.08 (-2.73%)
F   11.47 (-2.88%)
DIS   95.20 (-0.75%)
AMC   13.44 (+0.45%)
PFE   50.94 (+0.55%)
PYPL   71.10 (-1.00%)
NFLX   176.69 (-1.62%)
S&P 500   3,802.97 (-0.49%)
DOW   30,923.97 (-0.07%)
QQQ   283.00 (-0.19%)
AAPL   139.22 (+1.30%)
MSFT   259.49 (+1.17%)
META   163.59 (+1.81%)
GOOGL   2,226.91 (-0.59%)
AMZN   108.94 (+1.43%)
TSLA   671.16 (-3.84%)
NVDA   154.01 (-3.64%)
NIO   21.53 (-3.71%)
BABA   115.48 (-1.10%)
AMD   76.95 (-4.74%)
MU   55.65 (-3.82%)
CGC   3.52 (-2.49%)
T   20.77 (+0.78%)
GE   64.08 (-2.73%)
F   11.47 (-2.88%)
DIS   95.20 (-0.75%)
AMC   13.44 (+0.45%)
PFE   50.94 (+0.55%)
PYPL   71.10 (-1.00%)
NFLX   176.69 (-1.62%)

The TJX Companies: It’s Not All Doom And Gloom In Retail 

Thursday, May 19, 2022 | Thomas Hughes
The TJX Companies: It’s Not All Doom And Gloom In Retail 

The TJX Companies Beats And Raises On Strong Results 

The TJX Companies (NYSE: TJX) proves that it is not all doom and gloom in the retail sector. While the front-line retailers like Target and Walmart are struggling with growth and margins the off-price retailers like The TJX Companies are coming into their own. Not only are customers looking for bargains but there is an abundance of merchandise for The TJX Companies to sell. The company took advantage of retail closings over the past year and boosted inventory by nearly 38% while buying back shares and paying a nice dividend. The takeaway is that The TJX Companies is well-positioned for the year, widening margins, and raising guidance where others in the retail sector are doing the exact opposite. 

The TJX Companies Has Mixed Quarter 

The TJX Companies had a mixed quarter but that is about as bad as the news gets. The revenue of $11.41 billion missed the Marketbeat.com consensus by 145 basis points but we choose to focus on the 13.1% YOY growth and the margin. On a segment basis, the Marmaxx segment grew by 3% (12% on an open-only basis) while the Homegoods segment contracted by 7%. Homegoods sales are still up 17% on an open-only comparison, however, so the data is not as bad as it may look. On a three-year basis, relative to the prepandemic 2019 levels, revenue is up 23%. 

Turning to the margin, the news is a little mixed but gross margin contraction of 20 basis points is offset by 220 basis points of operating margin expansion so ultimately bullish. The detail of note, however, is that margin came in better than expected and led to outperformance on the bottom line despite the top-line weakness. The adjusted $0.68 in EPS is up in the 1, 2, and 3-year comparisons, and $0.08 better than expected including a $0.19 impairment related to Russia. The TJX Companies owns a minority stake in a Russian off-price retailer it is working to divest itself of. 


The guidance is equally mixed and biased to the upside with Q2 revenue and earnings expected to fall YOY and the FY expected to expand. The FY guidance is calling for EPS of $3.13 to $3.20 versus the $3.16 Marketbeat.com consensus which has yet to be adjusted for the impact of Russia. Because the company is still working to improve margin, we see upside risk in the numbers as well, at least on the bottom line. 

Capital Returns Help Lift The TJX Companies 

The TJX Companies pays a healthy dividend and buys back shares with its cash flow and is on track to deliver upwards of $3 billion in capital returns to shareholders. The company purchased $600 million worth of shares in Q1 and can be expected to buy as much as $1.9 billion more by the end of the year. That is worth about 2.9% of the market cap and that is on top of the dividend. The dividend is worth about 1.9% with shares trading at $61 and it comes with a positive expectation for distribution growth. The board approved an increase for Q1 which has already been declared and the payout ratio is comfortably low and below 40%.

The Technical Outlook: The TJX Companies Confirms Support 

Price action in The TJX Companies popped in the wake of the earnings report and has ended the budding downtrend. The caveat is that price action found resistance at the top of the recent range and resistance is capping the advance. If the market can not get above $62.60 there is a risk the downtrend will resume regardless of the outlook but we don’t think that will happen. Our worst-case scenario is rangebound trading at current levels. The best-case scenario is that price action will move above $62.60 and begin a new uptrend but we are a little skeptical of that just because general market conditions are so lousy. 

The TJX Companies: It’s Not All Doom And Gloom In Retail 

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
TJX Companies (TJX)
3.2583 of 5 stars
$56.98-0.9%2.07%20.72Moderate Buy$78.05
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in TJX Companies right now?

Before you consider TJX Companies, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and TJX Companies wasn't on the list.

While TJX Companies currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here

Free Email Newsletter

Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter:


Most Read This Week

Recent Articles

Search Headlines:

Latest PodcastHow to Profit In The Bear Market

Today, Kate is joined by a repeat guest, Rob Isbitts of Sungarden Investment Publishing. Rob specializes in ETF portfolios designed to deliver returns in any kind of market condition, including the current bear. In this conversation, Rob gives specific ideas for handling various allocations in your portfolio, and discusses how to approach inverse ETFs.

MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.