TJX (TJX) Stock Forecast & Price Target

TJX Companies demonstrated notable financial strength with total inventory increasing by 7.6% year-over-year, reflecting effective inventory management and procurement strategies. The firm achieved its eighth consecutive quarter of EBIT margin expansion, with Marmaxx's margin rising to 14.0% and HomeGoods reaching 12.0%, indicating ongoing operational efficiency and robust profitability. Additionally, comparable store sales grew by 5% year-over-year, surpassing both internal guidance and external expectations, while a 2% increase in square footage further supports the company's growth trajectory.

The analysis indicates a negative outlook for TJX Companies' stock based on several key financial metrics. The company is experiencing a decline in sales growth, with fourth-quarter sales falling approximately 0.4% year-over-year, and the pre-tax margin is expected to contract by 100-110 basis points compared to the previous year, falling to 10.0%-10.1%. Additionally, guidance for fiscal year 2025 EPS has been revised down to $4.43 from a prior estimate of $4.61, while international sales rates have also shown weakness, indicating ongoing pressures that may impact the company's performance.