TJX Companies, Inc. (NYSE:TJX) shares are trading higher on Wednesday.
The company reported second-quarter earnings per share of $1.10, beating the analyst consensus estimate of $1.01.
Quarterly sales of $14.40 billion (+7% year over year) outpaced the Street view of $14.13 billion.
Following the results, Telsey Advisory Group analyst Dana Telsey reiterated the Outperform rating on the stock, maintaining the price forecast of $150.
TJX Companies reported second-quarter consolidated comparable sales growth of 4%, exceeding its plan.
“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,” said Chief Executive Officer and President Ernie Herrman.
For the first half of fiscal 2026, net sales were $27.5 billion, an increase of 6% versus the first half of fiscal 2025.
Quarterly gross profit margin was 30.7%, up 0.3 percentage points versus last year’s 30.4%, primarily due to favorable hedges.
Merchandise margin was flat despite higher tariff costs versus last year.
The company also posted a pretax profit margin of 11.4%, which was above the high end of its plan by 0.9 percentage points. This was due to a combination of items including lower-than-expected tariff costs, expense leverage on above-plan sales, and the timing of certain expenses.
Total inventories as of August 2 were $7.4 billion, compared to $6.5 billion at the end of the second quarter of fiscal 2025. The company exited the quarter with cash and equivalents worth $4.639 billion.
The company continues to expect to repurchase approximately $2 billion to $2.5 billion of TJX stock during the fiscal year ending January 31, 2026.
During the fiscal quarter ended August 2, 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% versus the prior quarter.
Outlook
TJX Companies expects third-quarter GAAP EPS in the range of $1.17 to $1.19, slightly below the Street estimate of $1.22.
The firm raised its fiscal year 2026 GAAP EPS guidance to $4.52–$4.57 from $4.34–$4.43, above the Street estimate of $4.51.
Price Action: TJX shares are trading higher by 4.55% to $140.74 at last check Wednesday.
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