Can TJX International Momentum Drive the Next Phase of Growth?

TJX Companies’ TJX international business remains a key growth driver, underscoring the strength of its off-price retail model beyond the United States. In the second quarter of fiscal 2026, TJX International delivered a 5% year-over-year increase in comparable store sales, fueled by solid results in Europe and exceptional performance in Australia. Profitability also advanced, with TJX International segment profit margin on a constant currency basis rising to 5.2%, up 80 basis points from the prior year.

Management emphasized that TJX’s decades of experience abroad and leadership position in Europe and Australia make it a trusted value destination for shoppers. Customer transactions rose across all divisions, signaling that the company’s value proposition continues to resonate strongly with consumers globally.

Looking ahead, TJX sees significant opportunities to expand its international footprint. The company has identified the potential to open more than 1,800 additional stores across its existing markets, including Spain. These openings are expected to provide meaningful contributions to future sales and earnings growth.

Beyond Europe and Australia, TJX is pursuing new opportunities through its joint venture in Mexico and investment in the Middle East. Both initiatives are designed to introduce the company’s off-price concept to untapped regions, while diversifying its growth beyond core markets.

Supporting this expansion is TJX’s powerful global sourcing network, which includes over 21,000 vendors across more than 100 countries. This scale enables the company to consistently deliver fresh, branded assortments in its international stores, reinforcing traffic and positioning the segment for sustained success.

WMT & BBY Build Global Momentum as TJX Strengthens Abroad

Walmart Inc. WMT grew international sales in second-quarter fiscal 2026 by 10.5% year over year in constant currency. Growth was led by China, Walmex and Flipkart. E-commerce penetration in international markets reached nearly 27% of segment sales. International advertising expanded 15%, driven by Flipkart, demonstrating Walmart’s strength in scaling technology, digital ecosystems and global operations.

Best Buy Co., Inc. BBY reported $740 million in international sales in the second quarter of fiscal 2026, an increase of 11.3% year over year, driven by comparable sales growth of 7.6% and the expansion of Best Buy Express locations in Canada. However, Best Buy’s international gross margin decreased 210 basis points to 21.8%, primarily due to lower product margin rates, which were also largely driven by a higher mix of lower-margin product categories.

TJX Companies’ Price Performance, Valuation & Estimates

TJX stock has risen 6.6% over the past three months against the industry’s decline of 4.4%.

TJX Companies’ forward 12-month price-to-earnings ratio of 28.29X reflects a lower valuation compared with the industry’s average of 31.72X. It carries a Value Score of B.

The Zacks Consensus Estimate for TJX’s fiscal 2026 and 2027 earnings implies year-over-year growth of 7% and 10.3%, respectively. Earnings estimates for fiscal 2026 and 2027 have been upbound 8 cents and 10 cents, respectively, in the past 30 days.

TJX Companies currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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