TJX Cos., the parent company of T.J. Maxx, Marshall’s, and HomeGoods, reported a better-than-expected holiday quarter driven by customer transactions, reinforcing its position as a market leader in off-price retail. Despite beating Wall Street’s expectations for both revenue and earnings per share (EPS) in the fiscal 2025 fourth quarter, the company issued cautious guidance for the current fiscal year and quarter.
For fiscal 2026, TJX anticipates comparable sales growth of 2% to 3%, below the 3.4% expected by analysts. Its EPS guidance of $4.34 to $4.43 also fell short of the projected $4.59. The company cited a strong U.S. dollar and unfavorable exchange rates as factors expected to weigh on earnings growth by 3%.
In the fiscal fourth quarter, TJX reported net income of $1.40 billion, or $1.23 per share, compared to $1.40 billion, or $1.22 per share, a year earlier. Revenue was flat at $16.35 billion, despite an extra selling week in the prior year. Comparable sales grew 5%, surpassing estimates of 3.1%.
CEO Ernie Herrman highlighted the company’s strong performance and opportunities for future growth, particularly in international markets. TJX has also seen improvements in inventory shrinkage, aided by measures such as deploying body cameras in stores.
The retailer continues to benefit from consumer trade-down trends amid inflation and economic uncertainty, with plans to expand overseas, including entering Spain and increasing its stake in Brands for Less, a Dubai-based off-price chain.
— news from CNBC