TJX hits all-time high after knockout Q2 results and boost to full-year guidance
Off-price retail is back in fashion as shoppers across all incomes look for discounts and designer goods.
TJX shares climbed as much as 4% Wednesday afternoon, hitting an all-time high after the discount giant topped second-quarter estimates and raised its full-year forecast.
Diluted earnings per share landed at $1.10, ahead of Wall Street’s $1.01 consensus and TJX’s guidance for $0.97 to $1.00. Revenue rose 7% to $14.4 billion, also topping the Street’s forecast of $14.1 billion. Comparable (or same-store) sales grew 4%, outpacing TJX’s forecast of 2% to 3% and analyst estimates of 3.3%.
For the current quarter, TJX expects same-store sales growth of 2% to 3%, a midpoint that’s a little below Wall Street’s 2.9% estimate. The company guided diluted EPS to $1.17 to $1.19, shy of the $1.22 analysts were expecting. The brighter spot came in its full-year outlook: TJX raised its diluted EPS forecast to $4.52 to $4.57, above the Street’s call for $4.50, implying that it anticipates a very strong Q4.
Executives said transactions were up across every division, from MarMaxx (which includes Marshalls and T.J. Maxx) and HomeGoods to international stores, and highlighted growth in both apparel and home decor.
“Longer term, we believe the strength and resiliency of our flexible off-price business model will continue to be a tremendous advantage,” CEO Ernie Herrman said. “I am convinced that consumers will continue to seek out value, and that we will remain a very attractive option for those seeking great brands, fashions, and quality merchandise.”
Management also struck an upbeat tone heading into the fall and holiday season, saying they’re confident store buyers will deliver the right assortment to keep shoppers flowing during those key periods.
While tariffs weigh on much of retail, TJX sidesteps much of the burden by scooping up excess merchandise after it’s already been imported. That cushion makes the business model especially resilient right now. At the same time, inflation-stretched consumers are trading down for deals on clothes and home goods. TJX shares are up nearly 15% year to date.
