The TJX Companies, ($TJX) Reported Q1 Financial Results

The TJX Companies, Inc. ( TJX ) reported Q1 FY25 results, showing consolidated comparable store sales growth of 3% at the high-end of the company's plan, driven by an increase in customer transactions. The company also reported a pretax profit margin of 11.1%, up 0.8 percentage points compared to last year and well above its plan. The company's diluted earnings per share increased 22% compared to last year and was well above its plan.

TJX parent TJX Cos posted better-than-expected first-quarter results and raised its annual profit forecast on Wednesday, betting on easing costs and strong demand for its affordable products. Cooling inflation and lower prices compared to department stores have boosted sales across categories, including discretionary items that had slumped as inflation-wary customers limited shopping to essentials. The company's decade-old daily "treasure hunt" strategy also helped attract more customers, while lower freight costs and better inventory management strengthened its margins to 30%.

TJX is benefiting as wealthy shoppers trade down to cheaper retailers, and customers across income levels look to score designer goods at an affordable price. Shares of the company were up 2% in premarket trading after TJX lifted annual earnings estimates to $4.03 to $4.09 per share from $3.94 to $4.02 it had previously forecast. Walmart's positive annual forecast and Home Depot's unchanged full-year expectation signal that shoppers in the United States have been resilient and retailers could see better recovery in discretionary demand.

TJX maintained its annual sales forecast and reported a 6% rise to $12.48 billion in net sales for the first quarter ended March 4 from a year earlier, compared with LSEG estimates of $12.46 billion. On an adjusted basis, its profit of 93 cents per share beat analysts' estimate of 87 cents per share.

Technical Outlook
TJX is up 5.55% with a Relative Strength Index (RSI) of 69.24 which is quite overbought. The stock is approaching Pivot at $105 once reaching that milestone, a bullish campaign will be validated.