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TJX Shines Amid Tariffs, Reports Higher Profits and Sales Growth

Prime Highlights:

  • TJX beats Wall Street’s expectations for Q2 earnings and revenue, signaling strong performance despite tariff pressures.
  • The company raises its full-year guidance for earnings per share and comparable sales, showing confidence in continued growth.

Key Facts:

  • TJX reported Q2 earnings of $1.10 per share and revenue of $14.40 billion, surpassing analysts’ expectations of $1.01 per share and $14.13 billion.
  • Comparable sales grew 4% during the quarter, ahead of the forecasted 3.2%, while net income rose to $1.24 billion from $1.1 billion a year earlier.

Key Background:

TJX Cos., the parent company of popular off-price retailers T.J. Maxx, Marshalls, and HomeGoods, beat Wall Street’s expectations in its fiscal second quarter and raised its full-year guidance, showing strong performance despite ongoing tariff pressures.

The company had earnings per share (EPS) of 1.10 against the estimates by the analysts of 1.01. The quarterly revenue was also above expectations at $14.40 billion, as compared to the expectations that were set at $14.13 billion. Net income rose to $1.24 billion, up from $1.1 billion a year earlier, while net sales grew 7% to $14.40 billion. Comparable sales, which exclude new store openings and online sales, increased 4%, ahead of Wall Street’s projected 3.2%.

CEO Ernie Herrman highlighted the company’s strong performance, saying that every division saw higher customer transactions and strong demand in both U.S. and U.K markets. He also said that good second-quarter results had led the company to boost its full-year outlook on pretax profit margin and earnings per share at TJX. Herrman also expressed confidence in the company’s position as the third quarter starts strong and the second half of the year begins.

TJX now expects its full-year earnings for fiscal 2026 to be between $4.52 and $4.57 per share, higher than its previous estimate of $4.34 to $4.43. The company also raised its forecast for comparable sales to a 3% increase, up from the earlier range of 2% to 3%. These projections assume current U.S. tariff rates remain in effect for the rest of the year.

Experts say off-price retailers like T.J. Maxx can handle tariff pressures better because they usually buy extra merchandise that’s already in the U.S.

TJX shares reacted positively, rising about 4% during premarket trading on Wednesday. Investors and analysts will closely monitor the company’s upcoming earnings call for further insights into the impact of tariffs and the broader health of the consumer market.