TJX Companies (NYSE:TJX) Posts Quarterly Earnings Results

TJX Companies (NYSE:TJX) issued its earnings results on Wednesday. The apparel and home fashions retailer reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.19 by $0.03, Zacks reports. The firm had revenue of $15.18 billion for the quarter, compared to analyst estimates of $15.16 billion. TJX Companies had a return on equity of 56.56% and a net margin of 9.73%.The business’s revenue was up 5.4% on a year-over-year basis. During the same period in the previous year, the company posted $1.10 earnings per share. TJX Companies updated its FY 2027 guidance to 5.150-5.200 EPS and its Q3 2027 guidance to 1.360-1.380 EPS.

Here are the key takeaways from TJX Companies’ conference call:

• Second-quarter results exceeded expectations: Comparable sales rose 4%, adjusted pretax margin expanded 50 basis points to 11.9%, and adjusted EPS increased 11% to $1.22, helped by merchandise-margin gains, expense efficiencies, and sales leverage.
• TJX raised its full-year outlook, now expecting adjusted EPS of $5.15-$5.20, up 9%-10%, and adjusted pretax margin of 12.0%-12.1%; management also said the third quarter started strongly.
• Marmaxx underperformed with a 1% comparable-sales increase and a slight decline in transactions, which management attributed to self-inflicted merchandise-mix and allocation errors. Executives expect improvement in the third quarter and a return toward a 2%-3% comp pace by the holiday period.
• HomeGoods, TJX Canada, and TJX International delivered strong 6%-7% comparable-sales growth, with HomeGoods’ segment margin rising 240 basis points; management cited broad-based demand, strong execution, and continued market-share opportunities.
• TJX increased its long-term store potential by 500 locations to 7,500 stores and plans to accelerate annual store openings to 4% beginning next year, supported by plentiful merchandise availability and strong performance from new stores. Higher fuel and freight costs are expected to pressure second-half gross margins.

TJX Companies Stock Performance

TJX Companies stock opened at $140.76 on Friday. The firm’s fifty day moving average price is $156.18 and its 200-day moving average price is $156.75. TJX Companies has a fifty-two week low of $134.74 and a fifty-two week high of $170.00. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.54 and a current ratio of 1.15. The stock has a market cap of $155.50 billion, a P/E ratio of 26.02, a price-to-earnings-growth ratio of 3.12 and a beta of 0.62.

TJX Companies Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Thursday, August 13th will be given a dividend of $0.48 per share. The ex-dividend date is Thursday, August 13th. This represents a $1.92 annualized dividend and a dividend yield of 1.4%. TJX Companies’s dividend payout ratio (DPR) is 37.28%.

Insider Transactions at TJX Companies

In other TJX Companies news, CFO John Klinger sold 6,235 shares of TJX Companies stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $160.77, for a total value of $1,002,400.95. Following the transaction, the chief financial officer directly owned 64,257 shares of the company’s stock, valued at $10,330,597.89. The trade was a 8.84% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Ernie Herrman sold 10,002 shares of the company’s stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $160.68, for a total transaction of $1,607,121.36. Following the transaction, the chief executive officer directly owned 514,848 shares of the company’s stock, valued at approximately $82,725,776.64. This trade represents a 1.91% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 130,367 shares of company stock worth $20,959,476 in the last three months. Corporate insiders own 0.15% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in TJX. Brighton Jones LLC grew its stake in shares of TJX Companies by 113.7% in the fourth quarter. Brighton Jones LLC now owns 15,039 shares of the apparel and home fashions retailer’s stock worth $1,817,000 after acquiring an additional 8,002 shares during the last quarter. Revolve Wealth Partners LLC lifted its position in TJX Companies by 12.1% during the fourth quarter. Revolve Wealth Partners LLC now owns 2,172 shares of the apparel and home fashions retailer’s stock valued at $262,000 after purchasing an additional 235 shares in the last quarter. Bison Wealth LLC increased its stake in shares of TJX Companies by 32.9% in the fourth quarter. Bison Wealth LLC now owns 3,856 shares of the apparel and home fashions retailer’s stock worth $466,000 after purchasing an additional 955 shares in the last quarter. United Bank raised its stake in TJX Companies by 7.6% during the 2nd quarter. United Bank now owns 16,298 shares of the apparel and home fashions retailer’s stock valued at $2,013,000 after purchasing an additional 1,155 shares during the period. Finally, Schnieders Capital Management LLC. purchased a new stake in TJX Companies in the 2nd quarter worth $244,000. Hedge funds and other institutional investors own 91.09% of the company’s stock.

Analyst Ratings Changes

TJX has been the topic of several recent research reports. Citigroup downgraded shares of TJX Companies from a “buy” rating to a “neutral” rating and dropped their price objective for the company from $182.00 to $154.00 in a report on Thursday. Truist Financial set a $190.00 price target on shares of TJX Companies and gave the company a “buy” rating in a research report on Thursday, May 21st. Morgan Stanley set a $178.00 price target on shares of TJX Companies and gave the company an “overweight” rating in a research note on Thursday. Weiss Ratings lowered shares of TJX Companies from a “buy (b+)” rating to a “buy (b)” rating in a research note on Tuesday, July 21st. Finally, Telsey Advisory Group boosted their target price on shares of TJX Companies from $175.00 to $185.00 and gave the company an “outperform” rating in a report on Thursday, May 21st. Two analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $173.89.

More TJX Companies News

Here are the key news stories impacting TJX Companies this week:

• Positive Sentiment: TJX reported adjusted earnings of $1.22 per share, exceeding the $1.19 consensus estimate, while sales rose 5.4% year over year to $15.18 billion. Consolidated comparable sales increased 4%, and margins and cash flow were stronger than expected. TJX fiscal second-quarter results
• Positive Sentiment: Management raised its fiscal 2027 adjusted EPS outlook to $5.15-$5.20 and increased its long-term store target to 7,500 locations, supporting the company’s long-term growth case. TJX store growth and guidance
• Positive Sentiment: BTIG reaffirmed a Buy rating with a $190 price target, while UBS characterized the Marmaxx weakness as potentially isolated and viewed the selloff as a favorable setup.
• Neutral Sentiment: HomeGoods, Canada and International delivered comparable-sales growth of roughly 6%-7%, demonstrating continued demand for TJX’s off-price model outside its largest U.S. division.
• Neutral Sentiment: Analysts remain divided: some see a buying opportunity if Marmaxx execution improves, while Citi downgraded the shares to Neutral and Wells Fargo reduced its price target to $140.
• Negative Sentiment: Marmaxx, which includes TJ Maxx and Marshalls and represents TJX’s largest division, produced only 1% comparable-sales growth. Management attributed the shortfall to merchandising and assortment mistakes, raising concerns about execution and the durability of consumer demand. TJX Marmaxx weakness
• Negative Sentiment: Investors viewed the near-term outlook as less convincing, with third-quarter guidance and comparable-sales expectations described by several analysts as below a demanding valuation. Q2 earnings also benefited by about $0.14 per share from tariff refunds, making the underlying profit beat appear less powerful.
• Negative Sentiment: Competition for off-price spending, consumer resistance to price increases, rising bond yields and broader inflation concerns added pressure to the stock’s valuation and retail outlook.

TJX Companies Company Profile

TJX Companies, Inc is a leading off-price retailer of apparel, footwear, home fashions and other consumer goods. The company operates multiple retail concepts that offer discounted brand-name and designer merchandise, including well-known banners such as T.J. Maxx and Marshalls in the United States, HomeGoods for home furnishings, TK Maxx in parts of Europe, and Winners and Homesense in Canada. Merchandise categories span women’s, men’s and children’s apparel, accessories, beauty, home décor, kitchenware and small furniture, with frequent changes in assortment that create a “treasure-hunt” shopping experience for consumers.

The company’s business model centers on opportunistic buying, purchasing excess, irregular or out-of-season inventory from manufacturers, department stores and other suppliers, and passing savings to customers through lower prices.