TJX Companies Beats Q2 Estimates but Stock Falls on Marmaxx Weakness

TJX Companies reported second-quarter fiscal 2027 results on August 19 that topped Wall Street expectations, posting net sales of $15.2 billion, up 5% year over year and ahead of the $15.16 billion consensus estimate. Adjusted diluted earnings per share came in at $1.22, beating estimates of $1.19 and rising 11% from a year earlier. Comparable-store sales grew 4%, and adjusted pretax margin expanded 0.5 percentage points to 11.9%.

The company raised its full-year outlook, guiding for adjusted EPS of $5.15 to $5.20 and an adjusted pretax margin of 12.3% to 12.4%. Management credited continued strength at HomeGoods, TJX Canada and TJX International, where cost-conscious shoppers have been gravitating toward the off-price retailer's discounted apparel and home goods. Despite the beats, shares fell sharply, dropping as much as 5.5% before the open and roughly 1.3% at the open, as investors focused on the Marmaxx division, which posted a more modest comparable-sales gain that management attributed to self-inflicted merchandising execution issues.