TJX - Embedded Expectations Analysis - 2020 04 07
ï€ The TJX Companies, Inc. (TJX:USA) currently trades at historical highs relative to UAFRS-based (Uniform) earnings, with a 19.5x Uniform P/E. At these levels, the market has bullish expectations for the firm, and management is confident about sales growth, their apparel and home businesses, and e-commerce opportunitiesï€ Specifically, management is confident that both their apparel and home businesses were strong and in line with consolidated comp store sales and that 2019 marks the 24th consecutive year of consolidated comp store sales growth and the 12th straight year of customer traffic increase. In addition, they are confident that it is very difficult for those e-commerce retailers to forecast accurately the number of units they should buy in an item or a category and that 2021 will see a 2%-3% comp increase on a consolidated basis
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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