TJX Raises Guidance Despite Sales Slowdown at T.J. Maxx, Marshall

Dow Jones
Aug 19
 
 

TJX's U.S. apparel business fell short of quarterly expectations, signaling a pullback among shoppers even as the discount retailer raised its full-year earnings.

Same-store sales at Marmaxx, the company's largest segment made up of the T.J. Maxx and Marshalls banners, ticked up just 1% as price-sensitive consumers slowed their discretionary spending. The deceleration from 3% a year ago highlights how inflation-weary shoppers are growing increasingly selective with where they spend their money, forcing TJX to rely on its nonapparel and international sales to pick up the slack.

"While sales at Marmaxx were below our expectations, HomeGoods, TJX Canada and TJX International all delivered terrific comp sales increases of 6% to 7%, which underscores the strength of our global diversified business," Chief Executive Ernie Herrman said.

Shares fell 3.8% in premarket trading on Wednesday to $145.20. The stock has been under pressure in 2026, down 1.8% since the beginning of the year, but it is still up 12% over the last 52 weeks.

Still, TJX continues to capitalize on a broader macroeconomic shift, picking up market share as consumers turn to more affordable alternatives. The company is raising its full-year profit guidance and accelerating store growth, doubling down on its physical "treasure hunt" model and leveraging what executives called an outstanding availability in merchandise.

TJX now expects adjusted earnings to come in between $5.15 and $5.20 a share, up from previous expectations of $5.08 to $5.15 a share, but still below the $5.23-a-share expected by analysts, according to FactSet. Pretax profit margin to be in the range of 12.3% to 12.4%, up from a previous range of $11.9% to 12%.

TJX is also planning to open more stores starting in 2027, targeting 4% growth. Herrman said that the company can grow its overall global store base to a total of 7,500 stores across its existing retail banners over the long term.

For its second quarter, sales rose to $15.18 billion from $14.4 billion, topping an analyst consensus projection of $15.16 billion, supported by 4% growth in comparable sales.

Net income came to $1.52 billion, or $1.36 a share, compared with $1.24 billion, or $1.10 a share, in the same quarter a year ago.

Adjusted earnings were $1.22 a share, coming in ahead of the $1.19-a-share, expected by analysts and its own range of between $1.15 and $1.17, according to FactSet.

 
 

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