TJX – Market expectations are for Uniform ROA stability, and management is confident about same-store sales growth, traffic, and lease-related cost savings

• The TJX Companies, Inc. (TJX:USA)) currently trades at the higher end of historical averages relative to UAFRS-based (Uniform) Earnings, with a 21.9x Uniform P/E. At these levels, the market has stable expectations for the firm, and management is confident about same-store sales and traffic growth opportunities, and their ability to mitigate freight-driven cost pressures through lease renegotiation
• Specifically, management is excited about strong year-to-date performance, and is confident about year-over-year same-store sales growth. Additionally, they are confident in new opportunities to keep driving sales and traffic growth. Furthermore, management is confident in its ability to mitigate cost pressures by renegotiating expiring leases. However, management may be concerned about freight headwinds and may be overstating their ability to maintain margins, specifically for TJX Canada