TJX raises annual forecasts again following surprisingly strong quarterly figures

US retail group TJX Companies Inc. (TJX) exceeded its own forecasts and analyst expectations in the third quarter of the 2025/26 financial year. Consequently, the company set higher targets for the full year on Wednesday.

The off-price specialist, represented in Europe by its TK Maxx and Homesense formats, generated net sales of 15.1 billion dollars in the 13 weeks leading up to November 1. This corresponded to growth of seven percent compared to the same period last year. On a comparable basis, revenue increased by five percent.

Earnings in the most recent quarter were also higher than previously expected. In addition to surprisingly strong sales growth, an increase in gross margin from 31.6 to 32.6 percent contributed to this result. Net income rose by 11 percent to reach 1.44 billion dollars.

Management sees “strong start” to final quarter

Group sales rose by seven percent to 42.6 billion dollars in the first nine months of the current financial year. Net income grew by seven percent to 3.72 billion dollars.

Chief executive officer and president Ernie Herrman expressed his satisfaction. “I am extremely pleased with our third quarter results and the excellent execution of our off-price business model by our teams across the company,” he stated. “Revenue, pre-tax profit margin and earnings per share exceeded our expectations.”

Given the positive figures and a “strong start” to the fourth quarter, the group raised its annual forecasts once again. Comparable sales growth of four percent is now expected for 2025/26. Previously, a corresponding increase of three percent had been projected. The target for diluted earnings per share, previously set at 4.52 to 4.57 dollars, was raised to 4.63 to 4.66 dollars.

This article was translated to English using an AI tool.

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