Diesel Shock to Hit TJX, Ross, Burlington Margins: BofA - TJX Companies (NYSE:TJX)

Bank of America warns that a “diesel shock” tied to higher fuel costs will squeeze gross margins for TJX, Ross and Burlington starting in the second quarter of fiscal 2027. In a Tuesday note, analyst Lorraine Hutchinson cut earnings estimates and price targets, citing a freight bill building since the Iran conflict pushed fuel to record highs, though she maintained Buy ratings on all three. AAA put U.S. diesel at $6.35 a gallon Tuesday, about 73% higher than a year ago and near the $6.53 record. BofA expects new contract rates to begin in May. It projects domestic freight up 13% since April, with an additional 60 basis points of pressure on margins, or roughly $595 million combined.