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TJX Companies Inc - Stock Quote TJX

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Morningstar's TJX Companies Inc Stock Analysis

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Is it the right time to buy or sell?

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Strong Product Availability and Renewed Customer Focus on Value Should Work in TJX's Favor

Zain Akbari, CFA Equity Analyst

Business Strategy and Outlook

| Zain Akbari, CFA |

Despite store closures, inflation, freight and labor challenges, and an uncertain path to normalcy, we believe TJX and the rest of the off-price sector are better suited than most retailers to endure disruption from the pandemic and high inflation, with potential for improved merchandise availability as supply chain dislocations upset full-price stores’ merchandise orders. Store closures affected TJX’s operations outside the United States in fiscal 2022, and the emergence of new strains of the coronavirus could elongate the crisis. However, we still believe TJX and its peers benefit from durable advantages over full-price apparel and home decor sellers, with strong brands, store experiences, and scale working to keep returns on invested capital high (roughly 30% average over the next decade).

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TJX Companies Inc's Company Profile

Business Description

TJX is a leading off-price retailer of apparel, home fashions, and other merchandise. It sells a variety of branded goods, opportunistically buying inventory from a network of over 21,000 vendors worldwide. TJX targets undercutting conventional retailers' regular prices by 20%-60%, capitalizing on a flexible merchandising network, relatively low-frills stores, and a treasure-hunt shopping experience to drive margins and inventory turnover. TJX derived 79% of fiscal 2022 revenue from the United States, with 11% from Europe (mostly the United Kingdom and Germany), 9% from Canada, and the remainder from Australia. The company operated 4,689 stores at the end of fiscal 2022 under the T.J. Maxx, T.K. Maxx, Marshalls, HomeGoods, Winners, Homesense, Winners, and Sierra banners.

Contact
770 Cochituate Road
Framingham, MA, 01701
T +1 508 390-1000
Sector Consumer Cyclical
Industry Apparel Retail
Most Recent Earnings Apr 30, 2022
Fiscal Year End Jan 28, 2023
Stock Type Cyclical
Employees 340,000

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