TJX ups fiscal year guidance; has strong Q2 performance
TJX Cos. beat Wall Street projections for its second-quarter profits and sales and is increasing its guidance for the full fiscal year 2026.
The off-price retail giant reported net income of $1.24 billion, with earnings per share of $1.10, for the quarter ended Aug. 2, up 15% versus $.96 in the year-ago quarter. TJX net sales rose 7% to $14.4 billion, up from $13.5 billion.
Both of these figures were well ahead of Wall Street expectations. Analysts had predicted earnings per share of $1.01 and net sales of $14.13 billion. In a call with analysts, TJX CEO Ernie Herrman said that tariffs impacted TJX performance in the quarter, but less than the company had anticipated.
[READ MORE: TJX sales rise 5%; cites ability to offset tariff pressures]
Comparable sales growth of 4% also surpassed Wall Street estimates of 3.2%. By division, comp sales rose 3% at Marmaxx (includes Marshalls, TJ Maxx and Sierra) and were up 5% at HomeGoods (U.S.) Comps rose 9% at TJX Canada and 5% at TJX International (Europe and Australia).
TJX raises full-year guidance
The retailer increased its full-year fiscal 2026 guidance, although it cautioned the revised estimates are based on tariffs remaining at their current levels for the remainder of the year and its ability to offset pressure caused by them.
For the full year fiscal 2026, the company now expects consolidated comparable sales to be up 3% (compared to previous estimates of 2 to 3%) and is also raising its diluted earnings per share outlook to be in the range of $4.52 to $4.57 from a range of $4.34 to $4.43, which would represent a 6% to 7% increase over the prior year’s $4.26.
Full-year fiscal 2026 diluted earnings per share guidance now reflects the second quarter’s above-plan results as well as a smaller negative impact from unfavorable foreign currency exchange rates compared to previous guidance.
For the third quarter of fiscal 2026, the company expects consolidated comparable sales to be up 2% to 3% and is planning third quarter Fiscal 2026 diluted earnings per share to be in the range of $1.17 to $1.19, which would represent a 3% to 4% increase from the prior year’s $1.14.
“I am extremely pleased with our second quarter performance,” said Herrman. “As we have seen through so many different retail and economic environments, consumers were drawn to our excellent values and brands. Customer transactions were up at every division as we saw strong demand at each of our U.S. and international businesses. Longer term, we are convinced that we have a long runway ahead to capture additional market share and continue our successful growth around the world.”
During the fiscal quarter ended Aug. 2, 2025, the company increased its store count by 13 stores overall to a total of 5,134 stores and increased total square footage by 0.3% compared to the prior quarter.
Based in Framingham, Mass., TJX 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. It also operates e-commerce sites for TJ Maxx, Marshalls and Sierra in the U.S. and three sites for TK Maxx in Europe.
