2 months ago
Jim Cramer raised concerns about The TJX Companies, Inc. (NYSE:TJX) during the September 10 episode of Mad Money, as he said:
We had our CNBC Investing Club meeting today… I review each of the Charitable Trust positions on the call. This time, it was pretty clinical until I got to TJX, the off-price retailer. Candidly, I lost it on TJX. I've owned the stock for the Trust for as long as I can remember, and I've never felt so worried about this franchise. They have a bunch of divisions, but the biggest one, Marmaxx, consisting of TJ Maxx and Marshalls, really blew it. Management told us that they had figured out what had gone wrong and they've already fixed it, but because of competitive reasons or whatever, they wouldn't tell us what went wrong and they wouldn't tell us how they fixed it. I found that infuriating…
I came close to saying, forget it, Jim, it's retail. Sometimes retail is seductive. I love my local TJ Maxx, and I think Home Goods is a fun place to shop. The company's almost always about the best in the industry, crushing Burlington and Ross Stores. But this time, shockingly, Ross Stores upside surprised. It crushed TJX, much better than expected... So why bother sticking your neck out for something in this group? Simple. Because some of the greatest stories of all time have come from retail. Costco's been an incredible long-term performer. Walmart's been terrific. And TJX, it's been a wonder, one of the best stocks ever.
Could they really suddenly have lost it? Did they go all LULU? I don't think so. What happens, though, is you have to be conscious that TJX is right now being buffeted by its group, which is trading down because of the decline in discretionary income from the tax that is higher gasoline. We can't tell how much of its underperformance comes from that alone or maybe the mistakes that management made and says they've corrected. In other words, these retail stocks are very hard to own, even as they seem so easy to grasp.
TJX Companies, Inc. (NYSE:TJX) reported second-quarter fiscal 2027 sales of $15.18 billion, up 5% year over year, while consolidated comparable sales increased 4%. Adjusted diluted EPS rose 11% to $1.22, and the company raised its full-year diluted EPS outlook to $5.31-$5.36, or $5.15-$5.20 excluding an expected $0.16 net benefit from tariff refunds. The weakness was concentrated in Marmaxx, which includes TJ Maxx, Marshalls and Sierra. Comparable sales increased just 1%, down from 6% in the first quarter, while HomeGoods, TJX Canada and TJX International each posted comparable-sales growth of 6% or more.
#year
We had our CNBC Investing Club meeting today… I review each of the Charitable Trust positions on the call. This time, it was pretty clinical until I got to TJX, the off-price retailer. Candidly, I lost it on TJX. I've owned the stock for the Trust for as long as I can remember, and I've never felt so worried about this franchise. They have a bunch of divisions, but the biggest one, Marmaxx, consisting of TJ Maxx and Marshalls, really blew it. Management told us that they had figured out what had gone wrong and they've already fixed it, but because of competitive reasons or whatever, they wouldn't tell us what went wrong and they wouldn't tell us how they fixed it. I found that infuriating…
I came close to saying, forget it, Jim, it's retail. Sometimes retail is seductive. I love my local TJ Maxx, and I think Home Goods is a fun place to shop. The company's almost always about the best in the industry, crushing Burlington and Ross Stores. But this time, shockingly, Ross Stores upside surprised. It crushed TJX, much better than expected... So why bother sticking your neck out for something in this group? Simple. Because some of the greatest stories of all time have come from retail. Costco's been an incredible long-term performer. Walmart's been terrific. And TJX, it's been a wonder, one of the best stocks ever.
Could they really suddenly have lost it? Did they go all LULU? I don't think so. What happens, though, is you have to be conscious that TJX is right now being buffeted by its group, which is trading down because of the decline in discretionary income from the tax that is higher gasoline. We can't tell how much of its underperformance comes from that alone or maybe the mistakes that management made and says they've corrected. In other words, these retail stocks are very hard to own, even as they seem so easy to grasp.
TJX Companies, Inc. (NYSE:TJX) reported second-quarter fiscal 2027 sales of $15.18 billion, up 5% year over year, while consolidated comparable sales increased 4%. Adjusted diluted EPS rose 11% to $1.22, and the company raised its full-year diluted EPS outlook to $5.31-$5.36, or $5.15-$5.20 excluding an expected $0.16 net benefit from tariff refunds. The weakness was concentrated in Marmaxx, which includes TJ Maxx, Marshalls and Sierra. Comparable sales increased just 1%, down from 6% in the first quarter, while HomeGoods, TJX Canada and TJX International each posted comparable-sales growth of 6% or more.
#year
2 months ago
Jim Cramer raised concerns about The TJX Companies, Inc. (NYSE:TJX) during the September 10 episode of Mad Money, as he said:
We had our CNBC Investing Club meeting today… I review each of the Charitable Trust positions on the call. This time, it was pretty clinical until I got to TJX, the off-price retailer. Candidly, I lost it on TJX. I've owned the stock for the Trust for as long as I can remember, and I've never felt so worried about this franchise. They have a bunch of divisions, but the biggest one, Marmaxx, consisting of TJ Maxx and Marshalls, really blew it. Management told us that they had figured out what had gone wrong and they've already fixed it, but because of competitive reasons or whatever, they wouldn't tell us what went wrong and they wouldn't tell us how they fixed it. I found that infuriating…
I came close to saying, forget it, Jim, it's retail. Sometimes retail is seductive. I love my local TJ Maxx, and I think Home Goods is a fun place to shop. The company's almost always about the best in the industry, crushing Burlington and Ross Stores. But this time, shockingly, Ross Stores upside surprised. It crushed TJX, much better than expected... So why bother sticking your neck out for something in this group? Simple. Because some of the greatest stories of all time have come from retail. Costco's been an incredible long-term performer. Walmart's been terrific. And TJX, it's been a wonder, one of the best stocks ever.
Could they really suddenly have lost it? Did they go all LULU? I don't think so. What happens, though, is you have to be conscious that TJX is right now being buffeted by its group, which is trading down because of the decline in discretionary income from the tax that is higher gasoline. We can't tell how much of its underperformance comes from that alone or maybe the mistakes that management made and says they've corrected. In other words, these retail stocks are very hard to own, even as they seem so easy to grasp.
TJX Companies, Inc. (NYSE:TJX) reported second-quarter fiscal 2027 sales of $15.18 billion, up 5% year over year, while consolidated comparable sales increased 4%. Adjusted diluted EPS rose 11% to $1.22, and the company raised its full-year diluted EPS outlook to $5.31-$5.36, or $5.15-$5.20 excluding an expected $0.16 net benefit from tariff refunds. The weakness was concentrated in Marmaxx, which includes TJ Maxx, Marshalls and Sierra. Comparable sales increased just 1%, down from 6% in the first quarter, while HomeGoods, TJX Canada and TJX International each posted comparable-sales growth of 6% or more.
#sales #time #NYSE
We had our CNBC Investing Club meeting today… I review each of the Charitable Trust positions on the call. This time, it was pretty clinical until I got to TJX, the off-price retailer. Candidly, I lost it on TJX. I've owned the stock for the Trust for as long as I can remember, and I've never felt so worried about this franchise. They have a bunch of divisions, but the biggest one, Marmaxx, consisting of TJ Maxx and Marshalls, really blew it. Management told us that they had figured out what had gone wrong and they've already fixed it, but because of competitive reasons or whatever, they wouldn't tell us what went wrong and they wouldn't tell us how they fixed it. I found that infuriating…
I came close to saying, forget it, Jim, it's retail. Sometimes retail is seductive. I love my local TJ Maxx, and I think Home Goods is a fun place to shop. The company's almost always about the best in the industry, crushing Burlington and Ross Stores. But this time, shockingly, Ross Stores upside surprised. It crushed TJX, much better than expected... So why bother sticking your neck out for something in this group? Simple. Because some of the greatest stories of all time have come from retail. Costco's been an incredible long-term performer. Walmart's been terrific. And TJX, it's been a wonder, one of the best stocks ever.
Could they really suddenly have lost it? Did they go all LULU? I don't think so. What happens, though, is you have to be conscious that TJX is right now being buffeted by its group, which is trading down because of the decline in discretionary income from the tax that is higher gasoline. We can't tell how much of its underperformance comes from that alone or maybe the mistakes that management made and says they've corrected. In other words, these retail stocks are very hard to own, even as they seem so easy to grasp.
TJX Companies, Inc. (NYSE:TJX) reported second-quarter fiscal 2027 sales of $15.18 billion, up 5% year over year, while consolidated comparable sales increased 4%. Adjusted diluted EPS rose 11% to $1.22, and the company raised its full-year diluted EPS outlook to $5.31-$5.36, or $5.15-$5.20 excluding an expected $0.16 net benefit from tariff refunds. The weakness was concentrated in Marmaxx, which includes TJ Maxx, Marshalls and Sierra. Comparable sales increased just 1%, down from 6% in the first quarter, while HomeGoods, TJX Canada and TJX International each posted comparable-sales growth of 6% or more.
#sales #time #NYSE
2 months ago
On August 19, The TJX Companies (NYSE:TJX) reported second-quarter results that beat its own plan, even though its largest division could not keep pace with the rest of the business. Consolidated comparable sales rose 4%, adjusted earnings per share climbed 11% to $1.22, and management raised its full-year profit outlook. The catch is that Marmaxx, the TJ Maxx and Marshalls business that generates the bulk of TJX's revenue, grew comparable sales just 1%. Everything else in the portfolio ran hot enough to cover for it.
HomeGoods was the standout, with comparable sales jumping 7% on a higher average basket and more shoppers walking through the door at both the HomeGoods and Homesense banners. Segment profit margin there widened 240 basis points to 12.4%, helped by top-line growth and lower tariff costs. Management pointed to a year-round gifting push at HomeGoods as a way to keep the home category relevant between major holidays. TJX Canada and TJX International were just as strong, posting comparable sales growth of 6% and 7%. International margin expanded 210 basis points to 7.3% on a constant currency basis, and executives described customer response to the company's second TK Maxx store in Spain in glowing terms.
Behind all of it sits a sourcing network of roughly 21,000 vendors that management says keeps merchandise flowing faster than the company can buy it. That confidence showed up in TJX's growth plans: the company lifted its long-term store target by 500 locations to 7,500 and said it will accelerate new store openings to a 4% pace starting next year. Shareholders also got $1.3 billion back in the quarter, split between $798 million in buybacks and $529 million in dividends.
Marmaxx is where the story gets complicated. Comparable sales rose just 1%, entirely from a bigger average basket, while the number of transactions actually slipped. CEO Ernie Herrman was direct about the cause, saying the company "could have executed our store mix better" by not always having the right goods in the right stores at the right time. Segment profit margin held flat at 14.2%, and adjusted SG&A crept up 20 basis points companywide on higher store wage and payroll costs.
Management expects added pressure into the third quarter, pointing to higher fuel rates in the back half that are set to weigh on gross margin. Freight costs carry their own separate strain too, tied to a shrinking pool of new truck drivers entering the industry. Third quarter earnings guidance reflects some of that caution, with adjusted EPS projected at just $1.30 to $1.32, only 2% to 3% growth versus a year earlier. Inventory also grew faster than the store base, up 7% year over year heading into the fall and holiday season, meaning the company is betting heavily that Marmaxx's self-inflicted problems get fixed before that merchandise needs to move.
#store #comparable #management #Margin
HomeGoods was the standout, with comparable sales jumping 7% on a higher average basket and more shoppers walking through the door at both the HomeGoods and Homesense banners. Segment profit margin there widened 240 basis points to 12.4%, helped by top-line growth and lower tariff costs. Management pointed to a year-round gifting push at HomeGoods as a way to keep the home category relevant between major holidays. TJX Canada and TJX International were just as strong, posting comparable sales growth of 6% and 7%. International margin expanded 210 basis points to 7.3% on a constant currency basis, and executives described customer response to the company's second TK Maxx store in Spain in glowing terms.
Behind all of it sits a sourcing network of roughly 21,000 vendors that management says keeps merchandise flowing faster than the company can buy it. That confidence showed up in TJX's growth plans: the company lifted its long-term store target by 500 locations to 7,500 and said it will accelerate new store openings to a 4% pace starting next year. Shareholders also got $1.3 billion back in the quarter, split between $798 million in buybacks and $529 million in dividends.
Marmaxx is where the story gets complicated. Comparable sales rose just 1%, entirely from a bigger average basket, while the number of transactions actually slipped. CEO Ernie Herrman was direct about the cause, saying the company "could have executed our store mix better" by not always having the right goods in the right stores at the right time. Segment profit margin held flat at 14.2%, and adjusted SG&A crept up 20 basis points companywide on higher store wage and payroll costs.
Management expects added pressure into the third quarter, pointing to higher fuel rates in the back half that are set to weigh on gross margin. Freight costs carry their own separate strain too, tied to a shrinking pool of new truck drivers entering the industry. Third quarter earnings guidance reflects some of that caution, with adjusted EPS projected at just $1.30 to $1.32, only 2% to 3% growth versus a year earlier. Inventory also grew faster than the store base, up 7% year over year heading into the fall and holiday season, meaning the company is betting heavily that Marmaxx's self-inflicted problems get fixed before that merchandise needs to move.
#store #comparable #management #Margin
3 months ago
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Consolidated comparable sales grew 4%, exceeding internal plans due to the strength of a globally diversified business model that offset internal execution misses.
Marmaxx underperformance (1% comp) was attributed to self-inflicted execution issues regarding merchandise mix and failing to have the right goods in the right stores at the right time.
HomeGoods delivered an outstanding 7% comp, driven by a successful strategy of blending impulse 'treasure hunt' items with high-frequency consumable staples.
International divisions in Canada, Europe, and Australia saw 6% to 7% comp increases, validating the company's ability to export its off-price model to diverse geographies.
#internal #execution #tell #homegoods
Consolidated comparable sales grew 4%, exceeding internal plans due to the strength of a globally diversified business model that offset internal execution misses.
Marmaxx underperformance (1% comp) was attributed to self-inflicted execution issues regarding merchandise mix and failing to have the right goods in the right stores at the right time.
HomeGoods delivered an outstanding 7% comp, driven by a successful strategy of blending impulse 'treasure hunt' items with high-frequency consumable staples.
International divisions in Canada, Europe, and Australia saw 6% to 7% comp increases, validating the company's ability to export its off-price model to diverse geographies.
#internal #execution #tell #homegoods
