TJX Companies (TJX), the parent of T.J. Maxx, Marshalls, and HomeGoods, delivered a stronger-than-expected second-quarter report, lifting its full-year outlook and sending shares higher.
The retailer earned $1.10 per share, comfortably ahead of Wall Street’s $1.01 forecast. Quarterly revenue rose 7% year-over-year to $14.4 billion, surpassing analyst expectations of $14.1 billion. Comparable store sales climbed 4%, exceeding company guidance.
Shares jumped nearly 5% on Wednesday, making TJX the top-performing stock in the S&P 500 for the day.
Margins Hold Despite Tariff Pressures
TJX managed to expand profitability even in the face of higher tariffs. The company’s pretax profit margin reached 11.4%, half a point higher than a year earlier. Management credited cost efficiencies, favorable hedges, and well-timed expenses. Merchandise margins held steady year-over-year, underscoring the resilience of the company’s off-price model.
CEO Ernie Herrman praised the results, noting strong customer demand across all divisions, both in the U.S. and internationally. “Consumers were drawn to our excellent values and brands. Customer transactions were up at every division,” Herrman said.
TJX also highlighted its inventory position, which rose 10% per store compared to last year. Management described this as a reflection of “excellent buying opportunities” in the marketplace—an advantage off-price retailers enjoy when department stores face excess stock.
TJX managed to expand profitability even in the face of higher tariffs. The company’s pretax profit margin reached 11.4%, half a point higher than a year earlier. Management credited cost efficiencies, favorable hedges, and well-timed expenses. Merchandise margins held steady year-over-year, underscoring the resilience of the company’s off-price model.
CEO Ernie Herrman praised the results, noting strong customer demand across all divisions, both in the U.S. and internationally. “Consumers were drawn to our excellent values and brands. Customer transactions were up at every division,” Herrman said.
TJX also highlighted its inventory position, which rose 10% per store compared to last year. Management described this as a reflection of “excellent buying opportunities” in the marketplace—an advantage off-price retailers enjoy when department stores face excess stock.
Guidance Raised as Value Shoppers Fuel Growth
Looking ahead, TJX lifted its full-year earnings forecast to a range of $4.52 to $4.57 per share, up from a prior outlook of $4.34 to $4.43. That places the midpoint above Wall Street’s $4.51 consensus.
Third-quarter guidance was slightly softer, with projected earnings of $1.17 to $1.19 per share, shy of the $1.22 analysts expected. However, many investors and analysts view the forecast as conservative given the company’s track record of outperforming. Citi’s Paul Lejuez noted that third-quarter sales were off to a “strong” start.
All divisions posted positive same-store sales growth: TJX Canada led the way with 9%, while HomeGoods and international units both rose 5%, and Marmaxx gained 3%.
During the quarter, the company returned nearly $1 billion to shareholders through a mix of dividends and share buybacks.
Looking ahead, TJX lifted its full-year earnings forecast to a range of $4.52 to $4.57 per share, up from a prior outlook of $4.34 to $4.43. That places the midpoint above Wall Street’s $4.51 consensus.
Third-quarter guidance was slightly softer, with projected earnings of $1.17 to $1.19 per share, shy of the $1.22 analysts expected. However, many investors and analysts view the forecast as conservative given the company’s track record of outperforming. Citi’s Paul Lejuez noted that third-quarter sales were off to a “strong” start.
All divisions posted positive same-store sales growth: TJX Canada led the way with 9%, while HomeGoods and international units both rose 5%, and Marmaxx gained 3%.
During the quarter, the company returned nearly $1 billion to shareholders through a mix of dividends and share buybacks.
Conclusion
TJX’s results reaffirm the strength of the off-price retail model in today’s price-sensitive environment. With resilient margins, rising sales across its global divisions, and a raised full-year outlook, the company remains a standout performer in retail. As inflation-weary consumers continue to favor value-driven shopping, TJX is well-positioned to keep capturing market share.
TJX’s results reaffirm the strength of the off-price retail model in today’s price-sensitive environment. With resilient margins, rising sales across its global divisions, and a raised full-year outlook, the company remains a standout performer in retail. As inflation-weary consumers continue to favor value-driven shopping, TJX is well-positioned to keep capturing market share.
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