TJX Positioned For Market Share Gains: Analyst Notes Momentum In Sales And Margin Expansion

Goldman Sachs analyst Brooke Roach reiterated the Buy rating on TJX Companies, Inc. TJX with a price forecast of $137.

Yesterday, the company reported third-quarter earnings per share of $1.14 (+11%), beating the street view of $1.09. Quarterly sales of $14.06 billion (+6%) beat the analyst consensus estimate of $13.95 billion.

TJX Companies reported a 3% increase in consolidated comparable store sales at the high end of the company’s plan, driven entirely by higher customer transactions.

Roach remains optimistic after the quarter, maintaining a “constructive view.”

The analyst is encouraged by TJX’s continued momentum in transaction-driven comparable sales across its various brands, as well as its strong execution in both new and existing categories.

Additionally, there is a promising long-term growth potential for TJX on a global scale.

Also Read: Target Q3 Earnings: Supply Chain Chaos Hits Bottomline, Slashes Annual Profit Outlook, Stock Tanks

The analyst sees further opportunities for the company to gain market share and expand margins, benefiting from stronger vendor relationships and improved merchandise margins. This positions TJX well to navigate short-term industry challenges, such as tariffs and freight costs, Roach adds.

The analyst noted that while there have been choppy trends across various sub-sectors of consumer discretionary during the third-quarter earnings season, Roach is particularly encouraged by TJX’s strong messaging regarding the home sector and early fourth-quarter growth momentum.

However, the analyst also pointed out that unseasonable weather and the impacts of hurricanes are expected to remain key topics as companies continue reporting quarterly results, with a particular focus on early holiday selling trends for off-price and department store competitors.

Price Action: TJX shares are trading lower by 0.29% to $119.47 at last check Thursday.

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