TJX exceeds expectations in Q2 2026, raises full-year guidance

The TJX Companies, Inc. announced strong sales and operating results for the second quarter of its fiscal year 2026. Net sales for the quarter were 14.4 billion dollars, a 7 percent increase compared to the same period in the previous fiscal year. The company's second-quarter consolidated comparable sales increased by 4 percent. Net income for the quarter was 1.2 billion dollars, with diluted earnings per share of 1.10 dollars, representing a 15 percent rise from the prior year.

CEO and president Ernie Herrman expressed his satisfaction with the company's performance, noting that sales, pretax profit margin, and earnings per share all exceeded expectations. He stated that consumer demand for the company's "excellent values and brands" was strong across its U.S. and international businesses, with customer transactions up in every division. Herrman also mentioned the company's success in executing its off-price business fundamentals and creating a "treasure hunt" experience for customers.

The company's performance varied by division. Marmaxx, which includes TJ Maxx and Marshalls stores, saw a 5 percent increase in net sales. HomeGoods' net sales rose by 9 percent. TJX Canada's net sales grew by 11 percent. TJX International, which operates in Europe and Australia, experienced a 13 percent increase in net sales.

The company's pretax profit margin for the quarter was 11.4 percent, surpassing its plan by 0.9 percentage points. This was attributed to factors such as lower-than-expected tariff costs and operational efficiencies.

Looking ahead, TJX has raised its full-year guidance for both pretax profit margin and earnings per share. The company expects to repurchase between 2 billion dollars and 2.5 billion dollars of its stock in the fiscal year. For the third quarter, the company anticipates consolidated comparable sales to be up 2 percent to 3 percent and diluted earnings per share to be in the range of 1.17 dollars to 1.19 dollars, which would represent a 3 percent to 4 percent increase versus the prior year’s 1.14 dollars.

The full-year outlook now projects consolidated comparable sales to be up 3 percent. The company is increasing its outlook for pretax profit margin to be in the range of 11.4 percent to 11.5 percent, flat to down 0.1 percentage point versus the prior year’s 11.5 percent. The company is also raising its diluted earnings per share outlook to be in the range of 4.52 dollars to 4.57 dollars, which would represent a 6 percent to 7 percent increase over the prior year’s 4.26 dollars.

The company added 13 new stores during the quarter under review, bringing its total to 5,134 worldwide.