TJX beats Street in strong Q3
The TJX Companies Inc. saw growth in profits and sales during the third quarter of its fiscal year 2026 that went beyond predictions of Wall Street analysts.
The off-price apparel and home goods retailer reported net income for the quarter of $1.44 billion, up 11% from $1.3 billion in the third quarter of the prior year, with diluted earnings per share of $1.28, up 12% year over year from $1.14.
Net sales for the third quarter of fiscal 2026 were $15.1 billion, an increase of 7% from $14 billion in the same quarter of fiscal 2025. Third quarter Fiscal 2026 consolidated comparable sales increased 5%. All of these results exceed Wall Street expectations.
By division, comparable sales rose 6% year-over-year at Marmaxx (U.S.), 5% at Home Goods (U.S.), 8% at TJX Canada, and 3% at TJX International (Europe and Australia).
During the fiscal quarter ended November 1, 2025, TJX increased its store count by 57 stores overall to a total of 5,191 stores and increased total square footage by 1% from the prior quarter.
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Suzy Davidson, VP of content at EMarketer, said in emailed commentary to Chain Store Age that TJX delivered a “clear beat” in the quarter as shoppers continue to rely on off-price to stretch every dollar in an uncertain economic environment.
“Sharp price points, a constantly refreshed assortment, and that unmistakable treasure-hunt energy keep people coming back—and once they’re in the door, bigger baskets follow,” said Davidson. “Its sourcing model also works in its favor right now: department-store softness means more excess merchandise to buy, and TJX can turn those opportunistic finds into margin wins even with ongoing tariff pressure.”
Fourth quarter and full-year fiscal 2026 Outlook
For the fourth quarter of fiscal 2026, TJX continues to plan for consolidated comparable sales to be up 2% to 3%, pretax profit margin to be in the range of 11.7% to 11.8%, and diluted earnings per share to be in the range of $1.33 to $1.36.
For the full year fiscal 2026, TJX is now expecting its consolidated comparable sales to be up 4%. The company is also raising its diluted earnings per share outlook to be in the range of $4.63 to $4.66, which would represent a 9% increase over the prior year’s $4.26.
The company’s guidance for the fourth quarter came in slightly less than Wall Street projections but it exceeded analyst expectations for full-year guidance.
"I am extremely pleased with our third quarter performance and the excellent execution of our off-price business model by our teams across the company," said Ernie Herrman, CEO and president of The TJX Companies Inc. "Sales, pretax profit margin, and earnings per share all exceeded our expectations. Overall comp sales grew 5%, with strength at every division. We believe this is a testament to our value proposition and treasure-hunt shopping experience."
The TJX Companies Inc. operates over 5,100 stores across nine countries, including TJ Maxx, Marshalls, HomeGoods, Homesense, and Sierra in the U.S.; Winners, HomeSense, and Marshalls in Canada; TK Maxx and Homesense in Europe; and TK Maxx in Australia. The company also operates e-commerce sites for TJ Maxx, Marshalls, and Sierra in the U.S. and three sites for TK Maxx in Europe.
