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TJX vs. BURL: Which Off-Price Stock Is the Better Buy Now?
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Key Takeaways
TJX posted 4% comparable-sales growth, led by higher customer transactions and average basket size.
Burlington's sales rose 11% to nearly $3 billion as its U.S. store footprint continued expanding.
TJX targets 7,500 stores, while Burlington expects at least 110 net new stores annually.
Off-price retail has become an increasingly important part of the broader discount-store landscape as consumers seek recognizable brands without paying full-price retail. The TJX Companies, Inc. (TJX - Free Report) and Burlington Stores, Inc. (BURL - Free Report) are two major participants in this space, using flexible buying models and frequently refreshed assortments to attract bargain-focused shoppers across apparel, accessories, footwear, home products and other discretionary categories.
Although TJX and Burlington compete for a similar customer base, their business profiles are not identical. TJX operates at a much larger scale with multiple retail banners and exposure beyond the United States, while Burlington has concentrated on expanding its domestic footprint and refining store productivity. Their differing scale, sourcing capabilities, expansion strategies and operating structures provide a useful basis for comparing how each company is positioned within the competitive Retail – Discount Stores industry.
Let’s explore the key factors shaping their performance.
The Case for The TJX Companies Stock
TJX’s diversified off-price model continues to support broad-based demand across its retail banners. In the second quarter of fiscal 2027, consolidated comparable sales increased 4%, driven by higher customer transactions and average basket size. HomeGoods, TJX Canada and TJX International posted comparable sales growth of 7%, 6% and 7%, respectively, helping offset softer growth at Marmaxx.
Merchandising capabilities and product availability are central to TJX’s competitive positioning. Management highlighted outstanding branded merchandise availability, supported by a sourcing network of roughly 21,000 vendors and more than 1,400 buyers. This scale provides flexibility to curate differentiated assortments, refresh merchandise frequently and serve shoppers across a wide range of income and age demographics.
TJX is also extending its long-term growth runway through store expansion. The company raised its global store potential by 500 locations to 7,500 stores across existing banners and countries and plans to accelerate annual store growth to 4% beginning in fiscal 2028. TJX ended the second quarter with 5,285 stores, leaving meaningful room for further expansion.
Despite solid operating performance, cost and external pressures remain important challenges. Adjusted SG&A increased 20 basis points to 19.7% of sales, largely due to higher store wage and payroll costs, while fuel and freight are expected to pressure third-quarter gross margin. The amount, timing and likelihood of additional tariff refunds remain uncertain, while foreign-exchange movements can affect TJX’s reported international results.
The Case for Burlington Stock
Burlington continues to benefit from disciplined execution of its off-price model, offering branded apparel, footwear, accessories and home merchandise at compelling values. In the second quarter of fiscal 2026, total sales increased 11% to nearly $3 billion, while comparable-store sales rose 2%. The company ended the quarter with 1,287 stores, reflecting continued scale expansion across its U.S. footprint.
Merchandising and value positioning remain central to Burlington’s strategy. The company offers in-season branded merchandise at discounts of up to 60% compared with other retailers, targeting value-conscious shoppers, particularly moderate and lower-income households. Burlington is also reinvesting $55 million of tariff refunds into sharper values, reinforcing its focus on affordability for value-conscious shoppers.
Store expansion remains an important growth lever. Burlington opened 149 net new stores over the trailing 12 months, increasing its store count 13%, and expects at least 110 net additions annually. Operationally, the company is using predictive tools, enhanced routing, localization capabilities and Merchandising 2.0 systems to improve allocation, merchandise flow and responsiveness across its expanding network.
However, Burlington faces several near-term challenges. Management has become somewhat more cautious about the consumer environment, noting that moderate and lower-income households remain stretched. Higher fuel costs are also pressuring freight expense. The company also remains sensitive to warmer fall weather because of its outerwear exposure, and reinvestment of tariff refunds is expected to weigh on the third and fourth-quarter operating margins.
How Do the Estimates Compare for TJX & BURL?
The Zacks Consensus Estimate for The TJX Companies’ fiscal 2027 and 2028 EPS has remained unchanged in the past seven days at $5.22 and $5.74, respectively.
Image Source: Zacks Investment Research
The same for Burlington’s fiscal 2026 and 2027 EPS has been revised downward by 73 cents and 39 cents, respectively, over the past seven days to $11.92 and $13.32.
Image Source: Zacks Investment Research
Valuation & Price Performance of TJX & BURL
The TJX Companies currently trades at a forward 12-month P/E ratio of 23.42x, which is below the industry average of 27.38x. In comparison, Burlington trades at a lower multiple of 20.75x.
Image Source: Zacks Investment Research
In terms of stock performance, TJX has declined 9.2% over the past year, underperforming both the industry’s 8.5% growth and Burlington’s 3.3% increase.
One-Year Price Performance
Image Source: Zacks Investment Research
Bottom Line: TJX Emerges as the Stronger Off-Price Pick
TJX stands out in this comparison, backed by stronger comparable-sales growth, greater operating scale and broader geographic diversification. Its earnings estimates have also remained stable, providing better visibility than Burlington, which has seen recent downward revisions. Although Burlington offers a cheaper valuation and better one-year share-price performance, TJX’s extensive sourcing network, diversified banners and sizable store-growth opportunity make it the more compelling off-price investment choice at present.
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Image: Bigstock
TJX vs. BURL: Which Off-Price Stock Is the Better Buy Now?
Key Takeaways
Off-price retail has become an increasingly important part of the broader discount-store landscape as consumers seek recognizable brands without paying full-price retail. The TJX Companies, Inc. (TJX - Free Report) and Burlington Stores, Inc. (BURL - Free Report) are two major participants in this space, using flexible buying models and frequently refreshed assortments to attract bargain-focused shoppers across apparel, accessories, footwear, home products and other discretionary categories.
Although TJX and Burlington compete for a similar customer base, their business profiles are not identical. TJX operates at a much larger scale with multiple retail banners and exposure beyond the United States, while Burlington has concentrated on expanding its domestic footprint and refining store productivity. Their differing scale, sourcing capabilities, expansion strategies and operating structures provide a useful basis for comparing how each company is positioned within the competitive Retail – Discount Stores industry.
Let’s explore the key factors shaping their performance.
The Case for The TJX Companies Stock
TJX’s diversified off-price model continues to support broad-based demand across its retail banners. In the second quarter of fiscal 2027, consolidated comparable sales increased 4%, driven by higher customer transactions and average basket size. HomeGoods, TJX Canada and TJX International posted comparable sales growth of 7%, 6% and 7%, respectively, helping offset softer growth at Marmaxx.
Merchandising capabilities and product availability are central to TJX’s competitive positioning. Management highlighted outstanding branded merchandise availability, supported by a sourcing network of roughly 21,000 vendors and more than 1,400 buyers. This scale provides flexibility to curate differentiated assortments, refresh merchandise frequently and serve shoppers across a wide range of income and age demographics.
TJX is also extending its long-term growth runway through store expansion. The company raised its global store potential by 500 locations to 7,500 stores across existing banners and countries and plans to accelerate annual store growth to 4% beginning in fiscal 2028. TJX ended the second quarter with 5,285 stores, leaving meaningful room for further expansion.
Despite solid operating performance, cost and external pressures remain important challenges. Adjusted SG&A increased 20 basis points to 19.7% of sales, largely due to higher store wage and payroll costs, while fuel and freight are expected to pressure third-quarter gross margin. The amount, timing and likelihood of additional tariff refunds remain uncertain, while foreign-exchange movements can affect TJX’s reported international results.
The Case for Burlington Stock
Burlington continues to benefit from disciplined execution of its off-price model, offering branded apparel, footwear, accessories and home merchandise at compelling values. In the second quarter of fiscal 2026, total sales increased 11% to nearly $3 billion, while comparable-store sales rose 2%. The company ended the quarter with 1,287 stores, reflecting continued scale expansion across its U.S. footprint.
Merchandising and value positioning remain central to Burlington’s strategy. The company offers in-season branded merchandise at discounts of up to 60% compared with other retailers, targeting value-conscious shoppers, particularly moderate and lower-income households. Burlington is also reinvesting $55 million of tariff refunds into sharper values, reinforcing its focus on affordability for value-conscious shoppers.
Store expansion remains an important growth lever. Burlington opened 149 net new stores over the trailing 12 months, increasing its store count 13%, and expects at least 110 net additions annually. Operationally, the company is using predictive tools, enhanced routing, localization capabilities and Merchandising 2.0 systems to improve allocation, merchandise flow and responsiveness across its expanding network.
However, Burlington faces several near-term challenges. Management has become somewhat more cautious about the consumer environment, noting that moderate and lower-income households remain stretched. Higher fuel costs are also pressuring freight expense. The company also remains sensitive to warmer fall weather because of its outerwear exposure, and reinvestment of tariff refunds is expected to weigh on the third and fourth-quarter operating margins.
How Do the Estimates Compare for TJX & BURL?
The Zacks Consensus Estimate for The TJX Companies’ fiscal 2027 and 2028 EPS has remained unchanged in the past seven days at $5.22 and $5.74, respectively.
Image Source: Zacks Investment Research
The same for Burlington’s fiscal 2026 and 2027 EPS has been revised downward by 73 cents and 39 cents, respectively, over the past seven days to $11.92 and $13.32.
Image Source: Zacks Investment Research
Valuation & Price Performance of TJX & BURL
The TJX Companies currently trades at a forward 12-month P/E ratio of 23.42x, which is below the industry average of 27.38x. In comparison, Burlington trades at a lower multiple of 20.75x.
Image Source: Zacks Investment Research
In terms of stock performance, TJX has declined 9.2% over the past year, underperforming both the industry’s 8.5% growth and Burlington’s 3.3% increase.
One-Year Price Performance
Image Source: Zacks Investment Research
Bottom Line: TJX Emerges as the Stronger Off-Price Pick
TJX stands out in this comparison, backed by stronger comparable-sales growth, greater operating scale and broader geographic diversification. Its earnings estimates have also remained stable, providing better visibility than Burlington, which has seen recent downward revisions. Although Burlington offers a cheaper valuation and better one-year share-price performance, TJX’s extensive sourcing network, diversified banners and sizable store-growth opportunity make it the more compelling off-price investment choice at present.
TJX and BURL carry a Zacks Rank #3 (Hold) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.