TJX - Embedded Expectations Analysis - 2021 07 19
The TJX Companies, Inc. (TJX:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 27.8x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about sales growth, margins, and pent-up consumer demand.Specifically, management may lack confidence in their ability to sustain sales growth, increase market share, and continue driving in-store traffic. Moreover, management may lack confidence in their ability to improve margins, maintain consistency within their home businesses, and continue capitalizing on pent-up consumer demand. Additionally, they may be overstating their ability to prioritize the health of their employees and customers, and they may be concerned about the potential of their global buying offices and the strength of their business model. Finally, management may lack confidence in their ability to manage retail costs, continue making advantageous purchases in trending categories, and succeed in a normalized environment.
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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