TJX Companies (NYSE:TJX) Posts Quarterly Earnings Results, Beats Expectations By $0.03 EPS

TJX Companies (NYSE:TJX) posted its quarterly earnings data on Wednesday. The apparel and home fashions retailer reported $1.22 EPS for the quarter, beating the consensus estimate of $1.19 by $0.03, Zacks reports. TJX Companies had a return on equity of 57.92% and a net margin of 9.40%.The firm had revenue of $15.18 billion during the quarter, compared to the consensus estimate of $15.17 billion. During the same period in the prior year, the company earned $1.10 EPS. The firm’s revenue was up 5.4% compared to the same quarter last year. 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 Price Performance

Shares of TJX opened at $144.88 on Thursday. The company has a market cap of $160.05 billion, a P/E ratio of 28.13, a PEG ratio of 3.26 and a beta of 0.62. TJX Companies has a fifty-two week low of $134.74 and a fifty-two week high of $170.00. The company has a quick ratio of 0.54, a current ratio of 1.14 and a debt-to-equity ratio of 0.18. The firm’s 50 day moving average price is $156.73 and its 200 day moving average price is $156.81.

TJX Companies Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Thursday, August 13th will be paid a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Thursday, August 13th. TJX Companies’s dividend payout ratio is presently 37.28%.

Insider Buying and Selling at TJX Companies

In other news, CEO Ernie Herrman sold 29,549 shares of the stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $157.46, for a total value of $4,652,785.54. Following the sale, the chief executive officer directly owned 552,850 shares in the company, valued at approximately $87,051,761. This trade represents a 5.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO John Klinger sold 6,235 shares of TJX Companies stock in a transaction on Friday, June 5th. The shares were sold at an average price of $160.77, for a total value of $1,002,400.95. Following the completion of the transaction, the chief financial officer owned 64,257 shares of the company’s stock, valued at approximately $10,330,597.89. This trade represents a 8.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 130,367 shares of company stock worth $20,959,476. 0.15% of the stock is currently owned by insiders.

Hedge Funds Weigh In On TJX Companies

Several hedge funds and other institutional investors have recently made changes to their positions in TJX. Bank of America Corp DE increased its stake in shares of TJX Companies by 2.0% during the fourth quarter. Bank of America Corp DE now owns 25,620,925 shares of the apparel and home fashions retailer’s stock worth $3,935,630,000 after buying an additional 495,989 shares during the period. Amundi increased its position in shares of TJX Companies by 22.1% in the 3rd quarter. Amundi now owns 9,725,542 shares of the apparel and home fashions retailer’s stock valued at $1,391,822,000 after purchasing an additional 1,761,281 shares during the last quarter. Charles Schwab Investment Management Inc. increased its position in shares of TJX Companies by 0.5% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 7,043,550 shares of the apparel and home fashions retailer’s stock valued at $1,081,960,000 after purchasing an additional 32,284 shares during the last quarter. Raymond James Financial Inc. raised its holdings in shares of TJX Companies by 0.9% in the 4th quarter. Raymond James Financial Inc. now owns 6,010,324 shares of the apparel and home fashions retailer’s stock valued at $924,941,000 after purchasing an additional 53,215 shares in the last quarter. Finally, Wells Fargo & Company MN raised its holdings in shares of TJX Companies by 1.1% in the 4th quarter. Wells Fargo & Company MN now owns 5,180,963 shares of the apparel and home fashions retailer’s stock valued at $795,848,000 after purchasing an additional 54,363 shares in the last quarter. Hedge funds and other institutional investors own 91.09% of the company’s stock.

TJX Companies News Roundup

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

• Positive Sentiment: Solid quarterly results: Fiscal Q2 sales rose 5.4% to $15.18 billion, while adjusted EPS increased 11% year over year to $1.22, exceeding the roughly $1.19 analyst consensus. Consolidated comparable sales grew 4%, and improved margins supported the results. TJX Reports Q2 FY27 Results
• Positive Sentiment: Growth remains broad outside the core U.S. business: HomeGoods, Canada, and International operations reportedly delivered comparable-sales gains of approximately 6% to 7%, demonstrating continued demand for TJX’s off-price merchandise. Management also outlined a long-term target of 7,500 stores and plans to accelerate store growth. TJX Companies: Strength in HomeGoods, Canada, and International
• Neutral Sentiment: Full-year guidance was raised, but the increase was not enough to reassure investors: Fiscal 2027 adjusted EPS guidance was set at $5.15 to $5.20. The improved outlook reflects TJX’s earnings momentum, although expectations for the current year were already high.
• Negative Sentiment: Marmaxx and consumer concerns overshadowed the beat: Comparable sales at TJ Maxx and Marshalls rose only 1%, well below the performance of other divisions. Reports also indicated that part of the quarterly profit benefit came from tariff refunds, raising questions about the quality and sustainability of the earnings gain. Investors were further disappointed by softer-than-expected third-quarter sales or earnings expectations, suggesting that cost-conscious shoppers may be moderating spending. TJX slips as investors look past a headline beat

Analyst Ratings Changes

Several brokerages recently issued reports on TJX. Wells Fargo & Company restated an “outperform” rating and issued a $160.00 price objective (up from $155.00) on shares of TJX Companies in a report on Thursday, May 21st. Erste Group Bank lowered shares of TJX Companies from a “buy” rating to a “hold” rating in a research note on Wednesday, July 15th. BTIG Research boosted their price target on shares of TJX Companies from $185.00 to $190.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. Morgan Stanley reaffirmed an “overweight” rating on shares of TJX Companies in a research report on Thursday, August 6th. Finally, Barclays reiterated an “overweight” rating and issued a $190.00 target price (up from $183.00) on shares of TJX Companies in a report on Thursday, May 21st. Two research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Buy” and an average target price of $177.94.

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.