Shares of TJX Companies are under pressure following a rare miss in the off-price retailer’s largest business. The sell-off could create a buying opportunity. TJX stock is now down roughly 6% since the company reported after-hours results Wednesday. The main culprit: Comparable sales at its Marmaxx segment, which includes TJMaxx, Marshalls and Sierra retail chains, rose only 1% for the company’s fiscal second quarter of 2027, well short of the 3% growth expected by analysts. Shares are now down 16% since their record high hit on June 13. CEO Ernie Herrman called the quarter’s misstep “self-inflicted and within our control” during the post-earnings webcast Thursday. The issue, he said, came down to not having the “right goods at the right stores at the right time.” We appreciate the accountability and trust that TJX “has the fix in place,” said Club portfolio director Jeff Marks during Thursday’s Morning Meeting. Herrman and team said they are already seeing improvement in August. “If that continues through the quarter, it should be TJX getting back to its old ways,” he said. Despite the softer performance in Marmaxx, there was a lot to like in TJX’s report and what management had to say. Overall revenue increased 5.4% year over year to $15.18 billion, edging out the $15.17 billion consensus estimate, according to LSEG. Earnings per share (EPS) increased 10.9% to $1.22, exceeding expectations of $1.19. We’re restricted from purchasing the stock on Thursday, but Jeff Marks said we will look to add to our position on Friday or early next week. We maintain our $180 price target and buy-equivalent 1 rating on the stock. TJX YTD mountain TJX stock performance YTD. Some Wall Street analysts are less willing to look past the miss. Citi downgraded TJX from buy to neutral and lowered its price target from $182 to $154, calling Marmaxx’s performance “weak and disappointing” in a note to clients Thursday. Analysts said they couldn’t ignore the fact that TJX’s largest business segment “is being outcomped by off-price peers.” Ross Stores , for example, posted 17% comparable sales in the first quarter compared to 6% for Marmaxx. Ross reports earnings after the close Thursday, and analysts expect it to outperform TJX and Burlington . Gordon Haskett also downgraded TJX to hold from buy Thursday with a $155 price target. The firm cited a “concerning slowdown” at Marmaxx as the culprit of the lower re-rating, noting the quarter represented the weakest comparable sales performance for the segment in four years. Analysts added the performance raises concerns that Ross Stores and Target have “seeped their way into TJX’s market share.” Other analysts, however, came to TJX’s defense and share our general thinking on the company. “We don’t view this as a prolonged issue,” UBS analysts wrote on Marmaxx’s miss in a post-earnings note Thursday. Instead, they point to the company’s reliable merchandising expertise, which has “successfully corrected similar execution…
Read More: A rare stumble at TJX has Wall Street spooked. We see a chance to buy