TJX Lifts Annual Profit Guidance, Q3 Outlook Drags Shares
Following a stronger-than-anticipated second-quarter performance, TJX Companies, which owns T.J. Maxx, Marshalls, and HomeGoods, has revised its full-year profit outlook upwards. The company now forecasts diluted earnings per share for the fiscal year to be between $5.31 and $5.36, an increase from the previous estimate of $5.08 to $5.15. Additionally, the pretax profit margin guidance has been raised to 12.3%–12.4%, while the projection for comparable store sales growth remains steady at 3%–4%. For the upcoming third quarter, TJX anticipates adjusted diluted EPS of $1.30 to $1.32, slightly below the consensus of $1.35. In the quarter ending August 1, net income reached $1.52 billion, or $1.36 per share, with net sales totaling $15.18 billion. CEO Ernie Herrman highlighted a 1% growth in comparable sales for Marmaxx, with other segments witnessing growth of 6%–7%. The company returned $1.3 billion to shareholders and intends to expedite store openings.
Key facts
- TJX raised full-year diluted EPS forecast to $5.31-$5.36 from $5.08-$5.15.
- Full-year pretax profit margin guidance increased to 12.3%-12.4% from 11.9%-12.0%.
- Third-quarter adjusted EPS guidance of $1.30-$1.32 missed the analyst estimate of $1.35.
- TJX stock fell about 3% in premarket trading.
- Second-quarter net income rose to $1.52 billion from $1.24 billion year over year.
- Net sales increased to $15.18 billion from $14.4 billion.
- Results included $331 million in tariff refunds under the International Emergency Economic Powers Act.
- The company plans to accelerate store openings to 4% growth starting fiscal 2028, targeting 7,500 total locations.
- CEO Ernie Herrman said Marmaxx comparable sales grew 1%, while other divisions saw 6%-7% gains.
- TJX returned $1.3 billion to shareholders in the second quarter.
Entities
Artists
- Ernie Herrman
Institutions
- TJX Companies
- TJX
- T.J. Maxx
- Marshalls
- HomeGoods
- TJX Canada
- TJX International
- Marmaxx
- Reuters
- TJ Maxx