Prime Highlights:
- TJX Cos., the parent company of T.J. Maxx, Marshalls, and HomeGoods, reported a strong third quarter with sales and earnings beating Wall Street expectations.
- CEO Ernie Herrman said the holiday shopping season is off to a “strong start,” with the company well-positioned as a destination for value-conscious shoppers.
Key Facts:
- TJX’s third-quarter revenue rose 7% to $15.12 billion, and net income reached $1.44 billion, or $1.28 per share, both exceeding analyst expectations.
- For fiscal 2026, the company expects comparable sales growth of 4% and earnings per share between $4.63 and $4.66, above analysts’ forecasts.
Background:
TJX Cos., the parent company of T.J. Maxx, Marshalls, and HomeGoods, reported better-than-expected results for its fiscal third quarter and raised its full-year guidance, signaling a strong holiday season for the off-price retailer.
During the quarter, TJX’s sales rose 7% to $15.12 billion, surpassing Wall Street expectations of $14.85 billion. Net income reached $1.44 billion, or $1.28 per share, compared with $1.30 billion, or $1.14 per share, a year earlier. Comparable store sales increased 5%, well ahead of the anticipated 3.7%, reflecting continued demand from value-conscious shoppers.
CEO Ernie Herrman said, “The holiday shopping season is off to a strong start. The availability of merchandise continues to be outstanding, and our brands are well-positioned as gifting destinations for shoppers seeking value.” He highlighted that TJX continues to benefit from consumers trading down from higher-priced retailers, a trend that has helped drive consistent growth in recent years.
Despite the strong quarter, TJX’s guidance for the current quarter was slightly below expectations. The company expects comparable sales to rise between 2% and 3%, versus analysts’ projections of 3.1%, and earnings per share to range from $1.33 to $1.36, slightly under the forecasted $1.37.
However, the full-year outlook for fiscal 2026 remains strong. TJX now expects comparable sales to grow by 4%, higher than analysts’ estimate of 3.4%, and earnings per share to be between $4.63 and $4.66, above the projected $4.61.
TJX and other off-price retailers are benefiting from uncertain economic times, as shoppers look for deals without lowering quality. Higher tariffs elsewhere have also made TJX more appealing.
After the announcement, TJX shares went up slightly, showing that investors are confident in the company’s strong business and its good position for the holiday season.
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