WS News
19 Aug 2026, 14:20
TJX Stock Slips 0.8% Despite Q2 Earnings Beat and Higher Full-Year Guidance
TJX Companies (NYSE: TJX) shares fell about 0.8% on Wednesday after the off-price retailer reported stronger-than-planned fiscal second-quarter 2027 results and raised its full-year profit outlook.
The decline comes despite solid headline numbers, suggesting investors may be focusing on softer performance at the company’s core Marmaxx business and relatively cautious third-quarter comparable-sales guidance.
Q2 Sales Rise 5% as Earnings Outpace Expectations
TJX reported second-quarter net sales of $15.2 billion, up 5% from $14.4 billion a year earlier. Consolidated comparable sales increased 4%, above the company’s plan.
Diluted EPS climbed 24% year over year to $1.36. Excluding a $0.14 net benefit related to tariff refunds, adjusted EPS was $1.22, representing an 11% increase from the prior year. Net income reached $1.5 billion.
Profitability also improved. Adjusted pretax margin increased 50 basis points to 11.9%, while adjusted gross margin rose 70 basis points to 31.4%, helped by stronger merchandise margins.
Marmaxx Growth Lags Other TJX Businesses
One potential reason for the negative stock reaction is the performance of Marmaxx, TJX’s largest U.S. division, which includes TJ Maxx, Marshalls and Sierra.
Marmaxx comparable sales increased just 1%, compared with 3% a year earlier and below management’s expectations. By comparison, HomeGoods delivered 7% comparable-sales growth, while TJX Canada and TJX International grew 6% and 7%, respectively.
CEO Ernie Herrman acknowledged the weaker Marmaxx performance but said the division was showing improvement early in the third quarter.
TJX Raises FY27 Earnings Outlook
TJX raised its full-year adjusted pretax margin forecast to 12.0%-12.1% and increased its adjusted EPS outlook to $5.15-$5.20. The company continues to expect full-year comparable sales growth of 3%-4%.
However, TJX expects third-quarter comparable sales to increase only 2%-3%, representing a slowdown from Q2’s 4% growth. Adjusted EPS is projected at $1.30-$1.32.
That comparatively cautious near-term sales outlook, combined with weaker-than-expected Marmaxx performance, may be outweighing the earnings beat and higher full-year profit guidance in Wednesday’s trading.
TJX nevertheless remains positioned for longer-term expansion. The retailer plans to accelerate annual store growth to 4% beginning in fiscal 2028 and increased its long-term global store target from 7,000 to 7,500 locations.
TJX Companies (NYSE: TJX) shares fell about 0.8% on Wednesday after the off-price retailer reported stronger-than-planned fiscal second-quarter 2027 results and raised its full-year profit outlook.
The decline comes despite solid headline numbers, suggesting investors may be focusing on softer performance at the company’s core Marmaxx business and relatively cautious third-quarter comparable-sales guidance.
Q2 Sales Rise 5% as Earnings Outpace Expectations
TJX reported second-quarter net sales of $15.2 billion, up 5% from $14.4 billion a year earlier. Consolidated comparable sales increased 4%, above the company’s plan.
Diluted EPS climbed 24% year over year to $1.36. Excluding a $0.14 net benefit related to tariff refunds, adjusted EPS was $1.22, representing an 11% increase from the prior year. Net income reached $1.5 billion.
Profitability also improved. Adjusted pretax margin increased 50 basis points to 11.9%, while adjusted gross margin rose 70 basis points to 31.4%, helped by stronger merchandise margins.
Marmaxx Growth Lags Other TJX Businesses
One potential reason for the negative stock reaction is the performance of Marmaxx, TJX’s largest U.S. division, which includes TJ Maxx, Marshalls and Sierra.
Marmaxx comparable sales increased just 1%, compared with 3% a year earlier and below management’s expectations. By comparison, HomeGoods delivered 7% comparable-sales growth, while TJX Canada and TJX International grew 6% and 7%, respectively.
CEO Ernie Herrman acknowledged the weaker Marmaxx performance but said the division was showing improvement early in the third quarter.
TJX Raises FY27 Earnings Outlook
TJX raised its full-year adjusted pretax margin forecast to 12.0%-12.1% and increased its adjusted EPS outlook to $5.15-$5.20. The company continues to expect full-year comparable sales growth of 3%-4%.
However, TJX expects third-quarter comparable sales to increase only 2%-3%, representing a slowdown from Q2’s 4% growth. Adjusted EPS is projected at $1.30-$1.32.
That comparatively cautious near-term sales outlook, combined with weaker-than-expected Marmaxx performance, may be outweighing the earnings beat and higher full-year profit guidance in Wednesday’s trading.
TJX nevertheless remains positioned for longer-term expansion. The retailer plans to accelerate annual store growth to 4% beginning in fiscal 2028 and increased its long-term global store target from 7,000 to 7,500 locations.
