TJX shares surge after results show consumers crave value

TJX Companies Shares of the company (TJX) are trading higher on Wednesday after the retailer beat expectations for revenue and net profit for the second quarter of its fiscal year and raised its full-year outlook.

For the 13 weeks ended Aug. 3, TJX revenue rose 5.6% year over year to $13.5 billion, driven by comparable-store sales growth across all brands and geographies. This included a 5% combined domestic increase at TJ Maxx, Marshalls and Sierra. Earnings per share (EPS) rose 12.9% year over year to 96 cents.

“I am extremely pleased with our second-quarter results. Comparable-store sales growth of 4%, pretax profit margin and earnings per share all exceeded our plans,” TJX Chief Executive Ernie Herrman said in a statement. “Our overall comparable-store sales growth was driven entirely by customer transactions, which increased in every department.”

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The results beat analysts’ expectations. Wall Street had expected revenue of $13.3 billion and profit of 92 cents per share, according to Yahoo Finance.

“Based on our strong second-quarter results, we are raising our full-year guidance for both pretax profit margin and earnings per share,” Herrman said, adding that “the third quarter is off to a strong start.”

Here’s what TJX now expects to achieve compared to its previous forecasts:

Swipe to scroll horizontally

Metric	A new look	Previous perspective
Sales in comparable stores	About 3%	2% to 3%
Pre-tax profit margin	About 11.2%	11% to 11.1%
EPS	$4.09 to $4.13	$4.03 to $4.09

TJX forecasts third-quarter comparable-store sales would rise 2% to 3% and earnings per share would be between $1.06 and $1.08, slightly below the $1.10 per share analysts were expecting.

Is TJX stock worth buying, selling or holding?

TJX had an exceptional year on the charts, up 28% on a total return (price change plus dividends) basis. No wonder Wall Street is bullish on consumer stocks.

Of the 25 analysts covering TJX tracked by S&P Global Market Intelligence, 16 think it is a Strong Buy, five call it a Buy, three say it is a Hold and one has it a Sell. That gives it a consensus recommendation of Buy and that is a strong conviction.

Speaking for the bulls is Jefferies analyst Corey Tarlowe, who has a Buy rating and a $130 price target on the retail stock. “TJX should benefit from a secular migration to the off-price sector, which should rebound faster and stronger than other retail sectors,” Tarlowe writes in a note to clients. “Domestic and international expansion are unique growth opportunities.”

Not all analysts are bullish on TJX, though. Financial services firm CFRA Research rates TJX stock a Sell with a $100 price target. The stock is trading at 36 times fiscal 2026 earnings estimates, which is expensive for the leading retailer, CFRA Research analyst Zachary Warring said.

CFRA’s $100 price target implies a 17% discount to current levels.