Shares of TJX Companies Inc (NYSE:TJX) tanked in early trading on Thursday, despite the company Monday reporting upbeat first-quarter results.

Here are the key analyst insights:

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BTIG: TJX Companies reported a beat on both sales and margins. Transactions and basket size drove comps. "Performance was strong across all income cohorts and geographic regions, with no signs of consumer weakness," Drbul said in a note.

The analyst stated that the company has several strategies to drive comp strength and gain market share, including:

  • Marketing: Management is targeting a broad customer demographic, with new campaigns and partnerships expected this year.
  • Merchandise: Product availability is improving as the company scales. This enables the company to "maintain a strong value proposition across income cohorts."
  • Stores: The company is investing in training to improve in-store experience. International store expansion remains a "key area of growth."

TJX Companies indicated that it had made a good start to the second quarter and raised its fiscal 2027 guidance, he added.

BofA Securities: TJX reported net sales of $14.3 billion, up 9% year-on-year. Comp sales accelerated to 6% from 3% last year, Hutchinson said. Gross margin expanded 180 basis points (bps) to 31.3%, "driven by merchandise margin upside, favorable fuel hedges, and leverage on stronger sales," she wrote.

In previous quarters, ticket size drove comp growth. This time, growth is balanced between traffic and ticket. Hutchinson noted strength across categories, geographies, and income cohorts. Management expects strong new customer acquisition ahead. Younger customers are “an important driver of longer-term engagement and repeat traffic over time," she added.

TJX Price Action

Shares of TJX Companies had declined by 1.20% to $157.32 at the time of publication on Thursday.

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