Shoppers come and go the TJ Maxx store at the Mall at Prince George’s on August 17, 2022 in Hyattsville, Maryland.
Chip Somodevilla | Getty Images
TJX Cos. on Wednesday reported earnings and revenue that beat Wall Street’s expectations and raised its full-year guidance, as the discounter behind T.J. Maxx, Marshalls and HomeGoods said it assumes it can offset higher costs from tariffs.
TJX now expects full-year fiscal 2026 earnings will be between $4.52 and $4.57 per share, up from its prior guidance between $4.34 and $4.43 per share. The retailer also raised its comparable sales expectations to a 3% increase, versus prior guidance of a 2% to 3% rise. The new guidance assumes the U.S. tariff rates currently in place will remain in effect for the rest of the year.
“Customer transactions were up at every division as we saw strong demand at each of our U.S. and international businesses,” said CEO Ernie Herrman in a news release. “With our strong second quarter profit results, we are raising our full-year guidance for both pretax profit margin and earnings per share. The third quarter is off to a strong start, and I am very confident in our position as we enter the second half of the year.”
TJX shares rose more than 5% during morning trading Wednesday.
Here’s how TJX did in its fiscal 2026 second quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:
- Earnings per share: $1.10 vs. $1.01 expected
- Revenue: $14.40 billion vs. $14.13 billion expected
TJX executives had said in May that the second quarter would include a negative impact from tariff costs from orders it had already committed to when additional duties were announced.
The company’s net income for the three-month period that ended Aug. 2 was $1.24 billion, or $1.10 per share, up from $1.1 billion, or 96 cents per share, a year earlier.
Net sales came in at $14.40 billion, up 7% from $13.47 billion in the year-ago period.
Comparable sales, a key industry indicator that excludes new stores and online sales, grew 4% during the quarter, ahead of Wall Street estimates of 3.2%, according to StreetAccount.
Analysts have said off-price retailers such as T.J. Maxx are better positioned to sidestep major tariff costs in the near term because they purchase excess merchandise from other brands, usually after the items have already been imported into the U.S.
Analysts from UBS and Morgan Stanley said in research notes this month that TJX is poised to take market share away from traditional department stores because of that advantage.
During Wednesday morning’s earnings call, analysts will be listening for further commentary from TJX executives on the impact of tariffs and any insights on the health of the consumer.
TJX shares are up over 11% this year as of Tuesday’s close.
