Executive Summary

• The TJX Companies reported 4Q15 revenues of $9.0 billion, up 7.9% year over year and ahead of the $8.7 billion consensus estimate. EPS of $0.99 beat the consensus estimate of $0.94 and grew by 6.1% versus last year.
• Higher store traffic drove a 6% increase in comps, which were up from a 4% increase in the year-ago quarter. Comps at TJX Canada were 14% versus a 1% comp in Europe and Australia.
• The company expects same-store sales growth of 1%–2% in 2016 to be more than offset by foreign currency and wage increases of 4% each. That would put 2016 revenues down 6%–7%, to about $28.9–$2 billion. 2016 EPS is expected to be $3.29–$3.38, up 1%–2%. Guidance for both revenue and EPS is below consensus.