Core Viewpoint - TJX Cos. reported earnings and revenue that exceeded Wall Street expectations, leading to an increase in full-year guidance, indicating strong demand across its divisions despite tariff-related cost pressures [1][2][3]. Financial Performance - For fiscal 2026 second quarter, TJX's net income was $1.24 billion, or $1.10 per share, compared to $1.1 billion, or 96 cents per share, a year earlier [4]. - Net sales reached $14.40 billion, a 7% increase from $13.47 billion in the same period last year, with comparable sales growing 4%, surpassing Wall Street estimates of 3.2% [5][8]. Guidance Update - TJX raised its full-year fiscal 2026 earnings guidance to between $4.52 and $4.57 per share, up from the previous range of $4.34 to $4.43 per share [2]. - The company also increased its comparable sales expectations to a 3% rise, compared to the prior guidance of 2% to 3% [2]. Market Position - Analysts suggest that off-price retailers like TJX are better positioned to mitigate tariff costs due to their purchasing strategies, which involve acquiring excess merchandise after importation [6]. - Research notes from UBS and Morgan Stanley indicate that TJX is likely to gain market share from traditional department stores due to this advantage [6]. Investor Sentiment - Following the earnings report, TJX shares rose approximately 4% in premarket trading, reflecting positive investor sentiment [3]. - As of the previous close, TJX shares have increased over 11% this year [7].
TJ Maxx parent company TJX beats earnings expectations, raises full-year guidance despite tariff pressure