The TJX Companies (NYSE:TJX) saw shares rise 3.8% after reporting second-quarter results that surpassed analyst expectations, leading the off-price retailer to raise its full-year profit guidance.
The parent company of T.J. Maxx, Marshalls, and HomeGoods posted adjusted earnings per share of $1.10 for the quarter, well above the $1.01 analysts had anticipated. Revenue reached $14.4 billion, beating the $14.14 billion consensus and representing a 7% increase from the same period last year. Comparable store sales rose 4% across TJX’s portfolio.
TJX’s pretax profit margin came in at 11.4%, exceeding company plans and up 0.5 percentage points from Q2 2024. Management attributed the strong margin performance to favorable hedging, operational efficiencies, and timing of certain expenses.
“I am extremely pleased with our second quarter performance. Sales, pretax profit margin, and earnings per share were all above our plan,” said Ernie Herrman, Chief Executive Officer and President of TJX. “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.”
Looking forward, TJX raised its full-year EPS guidance to $4.52–$4.57 per share, above the $4.51 consensus. However, third-quarter guidance of $1.17–$1.19 per share came in below the $1.22 analysts had expected. The company maintained its forecast for 3% full-year comparable sales growth.
Inventory per store increased 10% from last year, which management said reflects “excellent buying opportunities” in the marketplace. During the quarter, TJX returned $1 billion to shareholders through $515 million in share repurchases and $474 million in dividends.
All divisions reported positive comparable sales growth, led by TJX Canada at 9%, followed by TJX International and HomeGoods at 5% each, and Marmaxx at 3%.
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