TJ Maxx Parent Company Posts Strong Holiday, but Issues Weaker-Than-Expected Guidance

Tjx companies Posted a better-to-exposed Holiday Quarter Driven Entrely by Customer Transactions, Indicating The Off-Price Giant is Still Taking Market Share from Department Stores and Otures Price-Conscious Consures Hunt for Deals.

The discounted behind tj maxx, marshall’s and home Goods Beat Wall Street’s Expectations on the top and bottom lines, but it Gave cautious guidance for the current focal year and currentty Quarter.

For its fiscal 2026, tjx is planning for comparable sales to rain between 2%and 3%, bell wall street expectations of up 3.4%, according to streetaccount. Its fiscal 2026 earnings guidance of between $ 4.34 and $ 4.43 per share is well below estimates of $ 4.59 per share, according to lseg, and its forecast for its current quers Expected.

TJX is expected comparable sales to Climb Between 2%and 3%, Behind Streetaccount Estimates of 3.4%, and it’s expecting earnings per share to be betteren 87 and 89 cents. Analysts was looking for 99 cents per share, according to lseg.

A Strong Us Dollar and Unfavorable Exchange Rates are expected to Weigh on Earnings Growth by 3% in Fiscal 2026, The company said in a news release. Theose conditions have Impacted other retailers Such as Levi StraussWall Street doesn’st appear to be punishing tjx over its outlook, as shares rose more than 3% in Premarket Trading.

Here’s how tjx did in its fiscal 2025 fourth Quarter Compared with What Wall Street was anticipating, based on a survey of analysts by lseg:

• Earnings per share: $ 1.23vs. $ 1.16 Expected
• Revenue: $ 16.35 billion vs. $ 16.20 Billion Expected

The company’s reported net income for the three-month period that ended Feb. 1 was $ 1.40 billion, or $ 1.23 per share, roughly flat compared with $ 1.40 billion a year earlier, or $ 1.22 per share, a year earlier.

Sales were basically unchanged at $ 16.35 billion, compared to $ 16.41 billion a year earlier. In the year -go period, tjx benefited from an extra seling week that it didn’T have in fiscal 2025.

While sales was flat during the Quarter, tjx posted just about the same in 13 weeks in fiscal 2025 as it did in 14 weeks in fiscal 2024. Stores and online sales, also green 5% during its fiscal fourth Quarter, Well ahead of estimates of 3.1%, according to streetaccount.

For the full fiscal year, tjx sales green 4% to $ 56.4 billion with one less seling week than the year -go period.

“Our Fourth Quarter Sales, Profitability, And Earnings Per Share Well Above Our Expectations. I am particularly pleased that our overall comps store sales green of 5% for for the Quarter Was DUE TO Strong to Strong to Stanger Increases in Comp Sales and Customer Transactions at Every Division, “CEO Ernie Herrman said in a news release.

“Longer Term, We See Many Opportunities to Successfully Grow Our Business and Deliver Value to even more consumers Around the World,” He Added.

Tjx has previous said it was seeing high rates of theft And other forms of inventory loss, Known as Shrink, in its storesBut thats trends appear to be slowing down. During the Quarter, its Pretax Profit Margin and Gross Margin Benefited from “Lower than expected inventory shrink experience,” The company said.

For Fiscal 2025, Lower Shrink Expenses Increased Tjx’s Gross Profit Margin by 0.2 Percentage Points.

Last year, tjx said it had deployed body cameras in some of its stores, and asked the devices had been effective in reduction in reviewing Shrink. Executives have said the cameras were an effective de-decalation tool, and people were less likely to behave badly when they knew they they were being video.

In December, CNBC Reported that Walmart Had Deployed a similar program,

The discounter behind tj maxx, marshall’s and homegoods have been on a torrid growth path over the last couple of years as consumers look for cheaper options amid passes Uncertain Economic Outlook,

Shoppers who’ve long gone to department stores like Macy’s, Kohl’s and even discounter Target Have looked to tjx to buy not just just clothes, but also household goods and other discretionary items they want but aln’t willing to pay full-price for.

That Trade-Down Effect Has Been a Boon to Tjx, and even as its growth begins to slow, it’s one of the few retailers that stands to Benefit from present donald trump ‘. To avoid paying high duties for important out of China, and potentially Mexico and CanadaSome companies have been Stocking up And over-order deliveries.

If they’re ultimately unable to sell through that inventory and end up needing to liquidate it in off-price channels, that could be advantageous to tjx, which has been benefited flowed from SUPPLY Chain disrupties and other “chaos” in the market, herrman Told analysts in November When the company reported fiscal third -Quarter earnings.

As tjx’s growth has slowed in the US, the discounter has started overseas. It’s taken a stake in brands for less, a dubai-based off-price chain, and also plans to enter spain early next year.

DURING The Quarter, Comparable Sales at Tjx Canada Gre 10%, on Top of 6% Growth in the Prior-Yaar Period. Comparable Sales at Tjx International, Which Includes Europe and Australia, Climbed 7%, After 3% Growth Last Year.

Comparable Sales Growth at Marmaxx, Which Includes Tj Maxx, Marshall’s and Sierra, Slowed Slightly to 4%, Compared to 5% in the year Period. HomeGoods and Homesense also posted lower comparble sales growth of 5%, compared to 7% in the year -go period.

The Tjx Home Goods Brands did manage to outperform the overall market, indicating the company is Taking Share in an environment that’s been been been particular touth for furniture and home retailers, home retailers Director Neil Saunders in a Research Note.

“The position here is helpful in that the Emphasis from Consures was firmly on making smaller updates to decor and refreshing things like soft furnishings or lighting in Rooms,” SAID SAD SADEDERSS. “This plays into the categories where homegoods and homegoods play strongly. As Ever, Good Levels of Newness – Especially in Seasonal Decor – Were Helpful in Driving Foot Traffic to Stores.”