TJX - Embedded Expectations Analysis - 2020 01 21
ï€ The TJX Companies, Inc. (TJX:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 25.3x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may be concerned about pricing headwinds, customer traffic, and inventory levelsï€ Specifically, management may lack confidence in their ability to mitigate tariffs and other pricing headwinds, and they may be exaggerating the performance of women's accessories and their conversion across all Marmaxx markets. Moreover, management may be concerned about the sustainability of favorable e-commerce inventory availability, and they may lack confidence in their ability to sustain customer traffic improvements, improve earnings, and manage inventory levels. Finally, they may lack confidence in their ability to maintain HomeGoods margins, manage capex costs, and promote their loyalty programs during the holiday season
TJX Companies is an off-price apparel and home fashions retailer. The company's segments comprised of: Marmaxx, which sells family apparel (including footwear and accessories), home fashions (including home basics, decorative accessories and giftware) and other merchandise; HomeGoods, which provides a range of home fashions, including home fashions, including furniture, rugs, lighting, soft home, decorative accessories, tabletop and cookware as well as pet, kids and gourmet food departments; TJX Canada, which operates the Winners, HomeSense and Marshalls chains in Canada; and TJX International, which operates the T.K. Maxx and HomeSense chains in Europe and the T.K. Maxx chain in Australia.
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