TJX Companies on Wednesday reported better-than-expected quarterly results, vaulting over the high bar inherent for a stock hovering near its record high into earnings. Revenue in the three months ended Aug. 2 increased 7% year over year to $14.4 billion, exceeding the consensus estimate of $14.1 billion, according to LSEG. Earnings per share (EPS) in the period came in at $1.10, beating expectations of $1.01, LSEG data showed, indicating growth of nearly 15% year over year. Same-store sales also came in ahead of expectations at 4%, better than the 3.3% the Street was looking for, according to FactSet. As a result of the strong release and increase to management’s full-year outlook, TJX is one of the top-performing stocks in S & P 500 on Wednesday, in an otherwise down day for the market. Better yet, TJX shares are well on their way to a fresh record close. TJX YTD mountain TJX Companies’ year-to-date stock performance. Bottom line We can’t ask for much more from TJX Companies. The parent company of TJ Maxx, Marshalls and HomeGoods delivered results that exceeded expectations on the top and bottom lines thanks to strength in all four operating segments: Marmaxx, which is home to the T.J. Maxx, Marshalls and outdoor-focused Sierra chains in the U.S. HomeGoods in the U.S. TJX Canada TJX International, which covers Europe and Australia. All four operating units saw a sequential acceleration in revenue growth. Plus, all but TJX International also saw a quarter-over-quarter pickup in same-store sales, which is a key retail industry metric. TJX International’s comparable sales held steady. Across the entire company, same-store sales came in better than expected, with customer transactions increasing in every division. Profitability was also strong. Gross margin performance exceeded expectations, as the merchandise margin managed to come in flat versus the prior year despite the impact of tariffs. Meanwhile, TJX’s selling, general and administrative expenses as a percentage of sales declined versus the year-ago period. While total SG & A costs came in slightly higher than analysts predicted, there’s no cause for concern here. To top it all off, TJX raised its full-year outlook to a level above what the Street was looking for. The outlook for its ongoing fiscal third quarter outlook was a tad below expectations, but management is notorious for under-promising only to over-deliver later. Indeed, TJX has now exceeded the high end of its own quarterly earnings guidance for 10 straight quarters. TJX Companies Why we own it : The owner of T.J. Maxx, Marshalls and HomeGoods is well-suited for the current economic environment, offering inflation-weary customers wide-ranging merchandise at compelling prices and a “treasure hunt” in-person shopping experience. It is also better suited to respond to tariffs than retailers that directly import most of their merchandise. Competitors : Ross Stores and Burlington Stores Last buy : July 21, 2025 Initiation : Aug….
Read More: We’re raising our price target on TJX after an impressive beat-and-raise