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TJX Stock Outlook 2025: TJX Companies’ CEO said on Wednesday that the holiday shopping season is off to a strong beginning.
The retailer, which owns TJ Maxx, HomeGoods, and Marshalls, posted third-quarter results that topped expectations on both sales and profit.
In a statement, CEO Ernie Herrman said the flow of merchandise has been excellent. He added that the team is enthusiastic about the deals appearing across the market.
Herrman also said the company’s brands are well-positioned as top gifting choices for shoppers looking for value this holiday season.
Even so, the retailer’s holiday forecast did not meet Wall Street’s expectations. The company expects comparable sales to grow between 2% and 3% this quarter, assuming current tariffs remain in place.
That falls slightly short of the 3.1% growth analysts were looking for, according to StreetAccount.
TJX is also projecting earnings per share of $1.33 to $1.36. That range comes in just under the $1.37 estimate reported by LSEG.
Shares gained more than 2% in premarket trading. TJX topped expectations for the quarter, according to analyst estimates compiled by LSEG.
Earnings per share came in at $1.28, above the projected $1.22. Revenue reached $15.12 billion, beating the $14.85 billion forecast.
For the three months ending Nov. 1, the company posted net income of $1.44 billion, or $1.28 per share. A year earlier, it reported $1.30 billion, or $1.14 per share.
Overall sales rose to $15.12 billion, up 7% from the $14.06 billion it generated in the same period last year.
Comparable sales rose 5% in the third quarter. That was well above the 3.7% growth analysts had projected, according to StreetAccount.
Following the stronger quarter, TJX lifted its full-year forecast. Its outlook for the current quarter was weaker than Wall Street expected, but the full-year guidance showed more strength.
TJX now expects comparable sales to grow 4% in fiscal 2026. That outlook is higher than the 3.4% increase analysts had forecast, according to StreetAccount.
The company also projects earnings per share between $4.63 and $4.66. That range comes in above the $4.61 estimate reported by LSEG.
The off-price retailer has grown faster than expected in recent years. Many shoppers are still buying new clothes, but they are looking for meaningful discounts, which has helped fuel that momentum.
Tough economic periods usually put pressure on most companies. However, off-price retailers often benefit, as some wealthier shoppers shift their spending toward lower-priced options.
TJX has noted in the past that higher tariffs can actually help its business. When other retailers raise prices in response, shoppers have an even stronger reason to choose an off-price store instead.
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