Another day, another retailer reportsTJX – the parent company of T.J. Maxx – gives the retail industry but a glimmer of hope, becoming one of the few to not disappoint in Q1.
- Shares popped up by 12% on Wednesday before getting weighed down by market mayhem to close up 7%. The spike came on the back of a rare (for the market rn) earnings beat of $0.68 per share on revenues that juuuust missed estimates at $11.41bn.
- Margins were in the spotlight, and this time they were shining bright. TJX managed to defend its margins against rising inflation and supply setbacks, reporting pre tax margins of 7.5% and saying that inflation could be working in its favor as consumers look for cheaper prices.
- The results were “a positive standout” in the market, according to Citi analyst Paul Lejuez and others like him, earning the stock a slew of positive ratings. TJX reckons it’s good luck is here to stay, forecasting FY revenue guidance that beat expectations.
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