TJX: High Bar Hurdled, 1Q Results and Outlook Calm Retail Fears; PT to $160

研报英文原文证据摘录

TJX: High Bar Hurdled, 1Q Results and Outlook Calm Retail Fears; PT to $160

Towards Value. 1Q comps were inline with elevated Prior 1.00 E 1.17 E 1.38 E 1.50 E 5.05 E

expectations and mgmt projected confidence in the business go-forward with 1) strength 2027E 1.24 E 1.30 E 1.49 E 1.65 E 5.68 E

across demos as Marmaxx and HG continued to comp +M-HSD for a 3rd consecutive Q Prior 1.10 E 1.27 E 1.50 E 1.63 E 5.50 E

(with HG handily lapping LY's strength), 2) no change in consumer behavior across any Source: Company Data, Wells Fargo Securities estimates, and Factset.

demos thus far, and 3) mgmt highlighting 2Q is off to a good start with "outstanding" NA = Not Available, NC = No Change, NE = No Estimate

branded merch availability - as off price continues to be favored by consumers.

Ike Boruchow

Equity Analyst | Wells Fargo Securities, LLC

More on Margins. Margins were nicely ahead of plan, driven by MM and topline lev - with Ike.Boruchow@wellsfargo.com | 212-214-8024

one of the most significant GM beats since FY23 (+180bps) as flow through remains Juliana Duque

healthy off merch/hedging. Notably, with HG's trajectory improving, +9% and margins Associate Equity Analyst | Wells Fargo Securities, LLC

leveraging 270bps (to 12.9% in 1Q), their margin gap to Marmaxx continues to narrow Juliana.Duque@wellsfargo.com | 305-329-6767

(-180bps vs. last year) with the concept trending back towards their historic 13-14% Robert Bischoff

margin, partly driven by benefits from freight (outsized impact vs. Marmaxx). Associate Equity Analyst | Wells Fargo Securities, LLC

Robert.Bischoff@wellsfargo.com | 305-329-6777

Puts and Takes on FY26 Plan. Notably, TJX flowed through most of 1Q upside (with FY

plan better than feared), with the balance from fuel-pricing headwinds - and FY comp was