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TJX's Q2 Earnings and Sales Beat Estimates, Comparable Sales Up 4%
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Key Takeaways
TJX reported Q2 EPS of $1.10, up 15% year over year and above the consensus estimate.
Net sales grew 7% to $14.4B, surpassing expectations on strength across all divisions.
Comparable store sales rose 4%, led by higher transactions across US, Canada, and international.
The TJX Companies, Inc. ((TJX - Free Report) ) posted second-quarter fiscal 2026 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Both metrics also increased from the year-ago quarter.
TJX's Quarterly Metrics: Key Insights
The TJX Companies’ earnings per share (EPS) were $1.10, up 15% from the year-ago quarter. The metric also exceeded the Zacks Consensus Estimate of $1.01 per share.
Net sales came in at $14.4 billion, registering an increase of 7% year over year and surpassing the Zacks Consensus Estimate of $14.1 billion.
In the Marmaxx (United States) division, the company’s net sales were $8,841 million, up 5% year over year. Net sales amounted to $2,286 million, up 9% year over year, in the HomeGoods (United States) division. TJX Canada’s net sales were $1,381 million, up 11% from the figure reported in the year-ago period. TJX International’s (Europe & Australia) net sales were $1,893 million, up 13% year over year.
The company witnessed a 4% jump in consolidated comparable store sales. This growth was primarily driven by higher customer transactions. Comparable store sales rose 3% at Marmaxx (United States), 5% at HomeGoods (United States), 9% at TJX Canada and 5% at TJX International (Europe & Australia).
The TJX Companies, Inc. Price, Consensus and EPS Surprise
The TJX Companies’ pretax profit margin was 11.4%, up 0.5 percentage points from the year-ago quarter’s level. The gross profit margin was 30.7%, up 0.3 percentage points year over year, mainly due to favorable hedges. Merchandise margin remained flat in spite of increased tariff costs year over year.
The company’s selling, general and administrative (SG&A) costs, as a percent of sales, were 19.5%, a 0.3 percentage point decrease, due to operational efficiencies and gains from the timing of certain expenses.
TJX’s Financial Health Snapshot
During second-quarter fiscal 2026, the Zacks Rank #3 (Hold) company’s store count increased by 13, ending the quarter with 5,134 stores.
The TJX Companies ended the quarter with cash and cash equivalents of $4.6 billion, long-term debt of $2.9 billion and shareholders’ equity of $8.9 billion. It generated an operating cash flow of $2.2 billion during the first half of the fiscal year.
During the quarter, the company returned $1 billion to its shareholders. The TJX Companies repurchased and retired 4.1 million shares. It paid out $474 million in dividends in the same quarter. During the reported quarter, the company completed the $1.1-billion that remained as of Feb. 1, 2025, from the earlier-announced stock repurchase program. In February 2025, management approved a new stock repurchase program, authorizing up to an additional $2.5 billion in share buybacks. As of Aug. 2, 2025, TJX had approximately $2.4 billion remaining under this stock repurchase authorization.
Consolidated inventories (on a per-store basis) as of Aug. 2, 2025, increased 10% year over year on a reported and constant currency basis. The TJX Companies is capitalizing on strong merchandise availability in the marketplace and is well-positioned to deliver fresh assortments to its stores and online platforms throughout the fall and holiday season.
What to Expect From TJX Moving Forward?
For fiscal 2026, The TJX Companies still expects consolidated comparable store sales growth of 3%. The full-year pretax profit margin is projected to range between 11.4% and 11.5%, reflecting flat to down 0.1 percentage point compared with 11.5% in the prior year and the earlier expected range of 11.3-11.4%. In addition, fiscal 2026 EPS is forecasted to be between $4.52 and $4.57, marking a 6-7% increase from the previous year’s $4.26 EPS and the earlier guidance of $4.34-$4.43. Foreign exchange headwinds are expected to have a slight negative impact on EPS growth in fiscal 2026.
For the third quarter of fiscal 2026, management expects consolidated comparable store sales to grow 2-3%. The company projects a pretax profit margin between 12% and 12.1%, reflecting a decline of 0.2-0.3 percentage points from 12.3% in the prior-year quarter. The quarterly EPS is expected in the bracket of $1.17-$1.19, representing a year-over-year increase of 3-4% compared with $1.14 in the year-ago period.
The TJX Companies’ third-quarter and fiscal 2026 guidance assumes that existing U.S. tariffs on imports into the US, as of Aug. 20, 2025, will stay in place through the rest of the fiscal year.
Shares of the company have gained 4.5% in the past three months compared with the industry’s growth of 5.9%.
The consensus estimate for Urban Outfitters’ current financial-year sales indicates growth of 8.6% from the year-ago figure. URBN delivered an average earnings surprise of 29% in the trailing four quarters.
Canada Goose, a designer and retailer of premium outerwear, currently carries a Zacks Rank #2 (Buy). GOOS delivered an average earnings surprise of 54.8% in the trailing four quarters.
The consensus estimate for Canada Goose’s current financial-year sales indicates a rise of 8.2% from the year-ago figure.
Allbirds, a lifestyle brand, currently has a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 20.7%, on average.
The Zacks Consensus Estimate for BIRD’s current financial-year EPS indicates growth of 18.3% from the year-ago figure.
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TJX's Q2 Earnings and Sales Beat Estimates, Comparable Sales Up 4%
Key Takeaways
The TJX Companies, Inc. ((TJX - Free Report) ) posted second-quarter fiscal 2026 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Both metrics also increased from the year-ago quarter.
TJX's Quarterly Metrics: Key Insights
The TJX Companies’ earnings per share (EPS) were $1.10, up 15% from the year-ago quarter. The metric also exceeded the Zacks Consensus Estimate of $1.01 per share.
Net sales came in at $14.4 billion, registering an increase of 7% year over year and surpassing the Zacks Consensus Estimate of $14.1 billion.
In the Marmaxx (United States) division, the company’s net sales were $8,841 million, up 5% year over year. Net sales amounted to $2,286 million, up 9% year over year, in the HomeGoods (United States) division. TJX Canada’s net sales were $1,381 million, up 11% from the figure reported in the year-ago period. TJX International’s (Europe & Australia) net sales were $1,893 million, up 13% year over year.
The company witnessed a 4% jump in consolidated comparable store sales. This growth was primarily driven by higher customer transactions. Comparable store sales rose 3% at Marmaxx (United States), 5% at HomeGoods (United States), 9% at TJX Canada and 5% at TJX International (Europe & Australia).
The TJX Companies, Inc. Price, Consensus and EPS Surprise
The TJX Companies, Inc. price-consensus-eps-surprise-chart | The TJX Companies, Inc. Quote
The TJX Companies’ pretax profit margin was 11.4%, up 0.5 percentage points from the year-ago quarter’s level. The gross profit margin was 30.7%, up 0.3 percentage points year over year, mainly due to favorable hedges. Merchandise margin remained flat in spite of increased tariff costs year over year.
The company’s selling, general and administrative (SG&A) costs, as a percent of sales, were 19.5%, a 0.3 percentage point decrease, due to operational efficiencies and gains from the timing of certain expenses.
TJX’s Financial Health Snapshot
During second-quarter fiscal 2026, the Zacks Rank #3 (Hold) company’s store count increased by 13, ending the quarter with 5,134 stores.
The TJX Companies ended the quarter with cash and cash equivalents of $4.6 billion, long-term debt of $2.9 billion and shareholders’ equity of $8.9 billion. It generated an operating cash flow of $2.2 billion during the first half of the fiscal year.
During the quarter, the company returned $1 billion to its shareholders. The TJX Companies repurchased and retired 4.1 million shares. It paid out $474 million in dividends in the same quarter. During the reported quarter, the company completed the $1.1-billion that remained as of Feb. 1, 2025, from the earlier-announced stock repurchase program. In February 2025, management approved a new stock repurchase program, authorizing up to an additional $2.5 billion in share buybacks. As of Aug. 2, 2025, TJX had approximately $2.4 billion remaining under this stock repurchase authorization.
Consolidated inventories (on a per-store basis) as of Aug. 2, 2025, increased 10% year over year on a reported and constant currency basis. The TJX Companies is capitalizing on strong merchandise availability in the marketplace and is well-positioned to deliver fresh assortments to its stores and online platforms throughout the fall and holiday season.
What to Expect From TJX Moving Forward?
For fiscal 2026, The TJX Companies still expects consolidated comparable store sales growth of 3%. The full-year pretax profit margin is projected to range between 11.4% and 11.5%, reflecting flat to down 0.1 percentage point compared with 11.5% in the prior year and the earlier expected range of 11.3-11.4%. In addition, fiscal 2026 EPS is forecasted to be between $4.52 and $4.57, marking a 6-7% increase from the previous year’s $4.26 EPS and the earlier guidance of $4.34-$4.43. Foreign exchange headwinds are expected to have a slight negative impact on EPS growth in fiscal 2026.
For the third quarter of fiscal 2026, management expects consolidated comparable store sales to grow 2-3%. The company projects a pretax profit margin between 12% and 12.1%, reflecting a decline of 0.2-0.3 percentage points from 12.3% in the prior-year quarter. The quarterly EPS is expected in the bracket of $1.17-$1.19, representing a year-over-year increase of 3-4% compared with $1.14 in the year-ago period.
The TJX Companies’ third-quarter and fiscal 2026 guidance assumes that existing U.S. tariffs on imports into the US, as of Aug. 20, 2025, will stay in place through the rest of the fiscal year.
Shares of the company have gained 4.5% in the past three months compared with the industry’s growth of 5.9%.
Key Picks
We have highlighted three better-ranked stocks, namely Urban Outfitters ((URBN - Free Report) ), Canada Goose ((GOOS - Free Report) ) and Allbirds, Inc. ((BIRD - Free Report) ).
Urban Outfitters, a fashion lifestyle specialty retailer, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Urban Outfitters’ current financial-year sales indicates growth of 8.6% from the year-ago figure. URBN delivered an average earnings surprise of 29% in the trailing four quarters.
Canada Goose, a designer and retailer of premium outerwear, currently carries a Zacks Rank #2 (Buy). GOOS delivered an average earnings surprise of 54.8% in the trailing four quarters.
The consensus estimate for Canada Goose’s current financial-year sales indicates a rise of 8.2% from the year-ago figure.
Allbirds, a lifestyle brand, currently has a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 20.7%, on average.
The Zacks Consensus Estimate for BIRD’s current financial-year EPS indicates growth of 18.3% from the year-ago figure.