TJX Earnings: Top-Line Growth Remains Strong as Shoppers Flock to Off-Price Channel; Shares Pricey

Wide-moat TJX capped off a strong fiscal 2025 by delivering fourth-quarter results that outpaced our expectations. Shoppers continued to peruse TJX's assortment of cheap branded merchandise as the firm enjoyed a 5% lift in companywide comparable sales (versus our estimate for a 3% gain), with growth underpinned by an increase in transaction volume. Pretax margin also expanded 40 basis points to 11.6%, outpacing our 10.8% estimate, with the improvement primarily stemming from favorable operating leverage and a reduction in inventory shrinkage.