TJX Posts Strong Quarter Amid Cautious Outlook for 2026

NORTH MIAMI BEACH, Florida — TJX Companies Inc. reported better-than-expected results for its holiday quarter, signaling strong customer engagement as price-conscious shoppers increasingly turn to off-price retailers. The company, which operates T.J. Maxx, Marshalls, and HomeGoods, exceeded Wall Street’s expectations on both earnings and sales, despite providing cautious guidance for the current fiscal year.

For fiscal 2026, TJX anticipates comparable sales growth between 2% and 3%, falling short of analysts’ expectations of 3.4%, according to StreetAccount. The company also projected earnings per share (EPS) to range from $4.34 to $4.43, which is below the anticipated $4.59 per share, as reported by LSEG.

In the fourth quarter of fiscal 2025, which ended on February 1, TJX announced a net income of $1.40 billion, or $1.23 per share, compared to $1.40 billion, or $1.22 per share, from the previous year. Sales remained stagnant at $16.35 billion, slightly lower than the year-ago figure of $16.41 billion. The prior year’s sales benefited from an additional selling week that was not available in fiscal 2025.

Analysts are expressing concerns as TJX, known for its competitive pricing strategy, faces pressure from a strong U.S. dollar and unfavorable exchange rates, which the company predicts will impact earnings growth by 3% in fiscal 2026.

Despite slowing growth, TJX has capitalized on a trend wherein customers prefer discounted options amidst ongoing inflation and high-interest rates. Traditional department store shoppers from retailers such as Macy’s and Kohl’s have shifted to TJX for not only clothing but also household items and other discretionary goods.

“Consumers are actively seeking deals in this challenging economic environment,” said Ernie Herrman, CEO of TJX. “This trade-down effect continues to favor our business model.”

Furthermore, TJX has positioned itself to benefit from market shifts caused by President Donald Trump’s tariff policies. Some retailers are over-ordering inventory to sidestep high import duties, leading to potential excess stock that could be liquidated through off-price channels, which would benefit TJX significantly.

In light of slowed U.S. growth, TJX is expanding its international footprint, having recently taken a stake in Brands for Less, an off-price chain based in Dubai, and preparing to enter the Spanish market in early 2024.