A rare stumble at TJX has Wall Street spooked. We see a buying opportunity
We trust the off-price retailer is already fixing its problems.
TL;DR
- TJX stock fell due to a 1% comparable sales increase in its Marmaxx segment, missing analyst expectations of 3%.
- Overall revenue increased 5.4% to $15.18 billion, and EPS rose 10.9% to $1.22, exceeding expectations.
- CEO Ernie Herrman acknowledged the miss as "self-inflicted" and within the company's control, with improvements already seen in August.
- Some analysts, like Citi and Gordon Haskett, downgraded TJX, citing weak Marmaxx performance and competition from peers like Ross Stores.
- Other analysts, including UBS, are confident in TJX's merchandising expertise and international expansion, believing the Marmaxx miss is temporary.
- The CNBC Investing Club maintains a buy rating and $180 price target, viewing the Marmaxx miss as a one-off issue.