Jefferies downgrades TJX to Hold on Marmaxx slowdown

Analyst

โดย Investing.com·

Summary · why it matters

Jefferies downgraded TJX Companies to Hold from Buy with a $145 price target, citing a more significant slowdown at its Marmaxx division than a typical merchandising miss. Comparable sales at Marmaxx, which accounts for over 60% of sales and nearly 70% of EBIT, slowed to 1% from 6%, the weakest since fiscal 2018 excluding the pandemic. The firm noted unusual direct involvement from buying, planning, senior merchandising leadership, and the CEO in remediation, expecting a recovery but not a quick one, with comps of 1% to 2% over the next three quarters versus consensus of 2% to 3%. Jefferies also highlighted that Ross Stores is outpacing Marshalls and T.J. Maxx by double digits, raising concerns about market share shifts, while still crediting TJX's diversification, margins, and strength in international and HomeGoods.