1Q27 Earnings Review: One of the best quarters out of TJX in quite some time; Raising Price Target to $190

Research evidence excerpt

1Q27 Earnings Review: One of the best quarters out of TJX in quite some time; Raising Price Target to $190

Investment Thesis

With revenues reaching $60 billion in FY26, across the U.S., Canada, Europe, and Australia, we continue to be impressed by the

management and execution at TJX Companies. We view TJX as the strongest company and operator in the share-winning Off-Price

sector, aided by its value orientation. TJX benefits from its scale of 5,000+ stores and a far-reaching vendor base, through its 1,300

buyers and more than 21,000 vendors globally in 100 countries. We believe TJX can win through many types of economic and retailCONSUMER environments with a multitude of competitive advantages, led by its highly tenured management team. We expect TJX to lead Off-

Price and continue to take market share from department stores and specialty stores. TJX has the flexibility in its operating model

to adeptly navigate the global tradewinds in today's environment. Longer-term, we remain confident in TJX’s ability to increase its

store base to 7,000 and grow revenues at a MSD% rate, while expanding its operating margins from FY26's 11.5%. TJX maintains aRETAIL strong balance sheet, ending 1Q27 with $5.6 billion of cash with ample capacity to return significant capital to shareholders. We

expect the company to be opportunistic with share repurchases this year alongside its $1.70 per share dividend payments.

Upcoming Catalysts Price PerformanceEQUITY ■ TJX reports earnings in August. $180

■ New store openings and existing store renovations could help drive demand into $170

TJX and its brands. $160

$150

$140RESEARCH $130

Base Case Assumptions: $190 Price Target $120

■ Our base case includes comps of 3% in 2Q27 for MarMaxx and Homegoods in $110

the U.S.