TJX - Embedded Expectations Analysis - 2020 07 28
The TJX Companies, Inc. (TJX:USA) currently trades above historical averages relative to UAFRS-based (Uniform) earnings, with a 55.1x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about store reopenings, e-commerce, and excess inventorySpecifically, management may lack confidence in their ability to continue reopening stores, improve pretax income, and ramp-up their e-commerce business. Moreover, they may lack confidence in their ability to draw consumers to their stores with their treasure hunt shopping experience and the number of vendors that are still looking for a retailer to do business with. In addition, management may have concerns about excess inventory in their distribution centers, and they may lack confidence in their ability to repurpose their inventory stock-ups and execute their national advertising initiatives. Finally, they may have concerns about their delayed capital spending plans, costs of their storefront investments, and their ability to pay rent
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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