MW TJ Maxx parent's stock jumps toward a record as consumers flock to its off-price goods

By Tomi Kilgore

Discount retailer sees sales and customer transactions increase at each of its U.S. and international businesses

TJ Maxx's parent's stock was rallying toward a record Wednesday after an earnings beat and raised outlook.

Shares of TJX Cos. surged into record territory in early Wednesday trading after the discount apparel and home-goods retailer reported accelerating sales at all of its store brands.

The company, which is the parent of TJ Maxx, Marshalls, HomeGoods, Homesense and Sierra store brands in the U.S., also beat fiscal second-quarter earnings expectations and raised its full-year outlook, saying it assumes it can offset the "significant pressure" expected from tariffs.

The stock $(TJX)$ rallied 4.2% in premarket trading to climb well above its May 19 record closing price of $135.03.

"Customer transactions were up at every division as we saw strong demand at each of our U.S. and international businesses," said Chief Executive Ernie Herrman, referring to fiscal second-quarter results.

He added that the third quarter "is off to a strong start."

Net income for the quarter to Aug. 2 rose 13.1% from a year ago to $1.24 billion, while earnings per share increased to $1.10 from 96 cents and beat the average analyst EPS estimate compiled by FactSet of $1.01. That marked the 10th straight quarter of bottom-line beats.

Net sales grew 6.9% to $14.4 billion, above the FactSet consensus of $14.14 billion.

Comparable sales, or sales in stores that have been open for more than a full fiscal year, rose 4% from a year ago to beat the FactSet consensus for 3.3% growth.

For the company's Marmaxx U.S. division, which includes TJ Maxx, Marshalls and Sierra stores and their e-commerce sites, comparable sales were up 3%, topping expectations for a 2% rise. Sales for the HomeGoods division, which includes HomeGoods and Homesense stores, increased 5% to beat expectations for a 4% increase.

TJX Canada comparable sales jumped 9% and TJX International sales rose 5%.

Profit margin of 11.4% was above the high end of TJX's target, due in part to lower-than-expected tariff costs.

For the full fiscal year, the company raised its comparable-sales growth outlook to 3% from a range of 2% to 3% and boosted its EPS guidance range to $4.52 to $4.57 from $4.34 to $4.43.

"The company's guidance assumes that it can offset the significant pressure it expects from tariffs throughout Fiscal 2026," TJX said in a statement.

TJX's stock has rallied 11.4% in 2025 through Tuesday, while the SPDR S&P Retail exchange-traded fund XRT has gained 5.9% and the S&P 500 index SPX has advanced 9%.

-Tomi Kilgore

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August 20, 2025 09:21 ET (13:21 GMT)

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