Wed Feb 26 13:10:00 UTC 2025: ## TJX Companies Beats Expectations Despite Cautious Outlook
**NEW YORK –** TJX Companies, the parent company of T.J. Maxx, Marshalls, and HomeGoods, reported better-than-expected holiday quarter results driven by strong customer transactions, showcasing its continued success in attracting price-conscious consumers. While the off-price retailer exceeded Wall Street’s earnings and revenue projections for the fourth quarter (ended February 1st), its guidance for fiscal year 2026 is more subdued, raising some concerns.
The company reported net income of $1.40 billion, or $1.23 per share, essentially flat compared to the prior year. Sales remained relatively steady at $16.35 billion. However, the year-over-year comparison is slightly skewed due to an extra week of sales in the prior year’s period.
Despite the strong quarter, TJX anticipates slower growth in the coming year. It projects comparable sales growth of 2% to 3% for fiscal 2026, falling short of analyst expectations of 3.4%. Similarly, its earnings per share guidance of $4.34 to $4.43 is significantly below the consensus estimate of $4.59. The first quarter forecast also lags behind predictions.
TJX attributes some of the projected slowdown to a strong U.S. dollar and unfavorable exchange rates, which are expected to negatively impact earnings growth by 3% in fiscal 2026.
The company’s success has been attributed to consumers trading down from department stores and other retailers amid persistent inflation and economic uncertainty. However, this trend appears to be moderating, leading to the more cautious outlook. TJX’s CEO, Ernie Herrman, has previously highlighted the potential benefit of increased inventory liquidation in the off-price market, a trend potentially exacerbated by previous tariff policies. The company is also expanding its international presence, with investments in overseas markets like the Middle East and plans for expansion into Spain.
First Piper 