Sabrina Escobar

TJX topped first-quarter earnings and revenue expectations, but the stock fell Wednesday after the discount retailer flagged that higher tariffs would lead to softer-than-expected second-quarter earnings.

TJX, the parent of TJ Maxx, Marshalls, and HomeGoods, reported adjusted earnings of 92 cents a share for the quarter ended May 3, better than the consensus estimate for 91 cents a share, according to FactSet.

Revenue of $13.1 billion topped analyst projections for $13 billion. Same-store sales, however, rose by 3% year over year, slightly below projections for a 3.1% uptick.

Shares were down 2% to $132.30 in premarket trading, while futures tracking the S&P 500 were down 0.5%. TJX's second-quarter outlook was weighing on the shares.

For the current quarter, TJX expects same-store sales to rise 2% to 3%, and for earnings per share to range from 97 cents to $1. The sales guidance was roughly in line with expectations for a 2.9% increase, but analysts had penciled in earnings per share of $1.03, which is higher than the current range. The outlook reflects higher tariff costs tied to merchandise TJX was committed to at the time additional levies were announced in March and April.

That said, TJX reiterated its guidance for the fiscal year, calling for same-store sales to rise 2% to 3% for the year, and for earnings per share to range from $4.34 and $4.43.

Write to Sabrina Escobar at sabrina.escobar@barrons.com

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May 21, 2025 08:31 ET (12:31 GMT)

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