TJX Companies reported a 6% increase in first-quarter same-store sales, driven by higher customer traffic and spending across its TJ Maxx, Marshalls, and HomeGoods banners, with HomeGoods posting a 9% comp. Gross margin expanded nearly 2 percentage points to 31.3%, and management sees room for over 1,800 new stores, led by expansion in the U.S. home furnishings market, where it recently raised its long-term HomeGoods target from 1,000 to 1,800 locations. However, shares have risen 34% over the past year and now trade at roughly 32 times this year's earnings estimates, prompting caution that the premium valuation may limit further returns despite the company's strong operational performance.
The TJX Companies IncSame-store sales rose 6% driven by higher customer traffic and spending, with HomeGoods posting 9% comp.
Marshalls PLC