First Read: The TJX Companies Inc "1Q Report Probably a Modest Positive for..."

研报英文原文证据摘录

First Read: The TJX Companies Inc "1Q Report Probably a Modest Positive for..."

oost sentiment modestly, in our view. Some may think TJX not flowing through

Q1E 1.03 1.02

the entirety of its Q1 beat to its FY EPS guidance due to higher fuel costs may weigh on

Q2E 1.22 1.19

sentiment, but we don't. Our conversations with investors suggest the market was likely Q3E 1.43 1.38

prepared for this risk and, in our view, investors are likely to focus more on TJX's solid Q1 Q4E 1.57 1.54

beat and FY27 outlook. Importantly, based on our conversations with investors, the vast 01/27E 5.25 5.12

majority own TJX for more than just this print. They view TJX as a long-term holding and 01/28E 5.90 5.68

the best "defensive" play in Softlines. This report likely increases conviction in that view. 01/29E 6.50 6.25

Jay SoleOur view: We continue to rate TJX Buy:

Analyst

We think TJX is a growth stock with solid upside potential. TJX's Q1 report gives us jay.sole@ubs.com

increased conviction in this view, particularly given solid, broad-based comp sales +1-212-713 3559

growth (Fig. 4). Our view is TJX will take major market share from Department Store

Mauricio Serna, CFA

peers over the next few years. Plus, we believe TJX's newer businesses, such as Analyst

HomeSense and Sierra Trading Post, have big potential, as does its Europe operation, mauricio.serna@ubs.com

particularly given its entrance into Spain with its TK Maxx banner in 2026. +1-212-713 9028

Natalie Koltermann

TJX reported a 17c 1Q EPS beat: $1.19 vs. cons. $1.02: Associate Analyst

Net sales rose 9.2% y/y to $14.32B. TJX's 1Q27 sales growth rate was ~235 bps ahead natalie.koltermann@ubs.com

of the consensus estimate. Total TJX comp sales rose 6% y/y, vs. the Street's 4.1% +1-212-713 4229

estimate.