TJX Q2 adjusted EPS beats on strong HomeGoods segment sales

The TJX Companies

19/08/2026 12:55

Overview
U.S. off-price retailer's Q2 revenue slightly beat analyst expectations, adjusted EPS beat estimates
Company returned $1.3 bln to shareholders via share repurchases and dividends in Q2
TJX raised full-year FY27 profit margin and EPS guidance, plans 4% store growth in FY28

Outlook
TJX raises FY27 pretax profit margin outlook to 12.3%-12.4%, adjusted to 12.0%-12.1%
TJX raises FY27 diluted EPS outlook to $5.31-$5.36, adjusted to $5.15-$5.20
Company plans Q3 comp sales up 2%-3%, Q3 EPS of $1.36-$1.38

Result Drivers
DIVISIONAL SALES MIX - Strong comp sales growth at HomeGoods, TJX Canada, and TJX International divisions drove overall results, while Marmaxx division sales lagged, per CEO Ernie Herrman
MERCHANDISE MARGIN - Gross profit margin rose due to higher merchandise margin, according to company statement
TARIFF REFUND BENEFIT - Net benefit from IEEPA tariff refunds contributed to higher profit margins in the quarter

Company press release: ID:nBw5kmk91a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Slight Beat*
$15.18 bln
$15.16 bln (18 Analysts)
Q2 Adjusted EPS
Beat
$1.22
$1.19 (19 Analysts)
Q2 EPS
 
$1.36
 
Q2 Net Income
 
$1.52 bln
 
Q2 comparable sales Growth
 
4.00%
 
Q2 Pretax Profit
 
$2.02 bln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the discount stores peer group is "buy"
Wall Street's median 12-month price target for The TJX Companies, Inc. is $181.00, about 20% above its August 18 closing price of $150.85
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 30 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)