TJX Companies, Inc. (NYSE:TJX) stock rose Wednesday after the off-price retailer topped quarterly expectations and reiterated confidence in its value-driven model.
The company also flagged a larger share buyback plan and outlined an upcoming dividend hike, pending board approval.
Quarterly Metrics
The company reported fourth-quarter adjusted earnings per share of $1.43, beating the analyst consensus estimate of $1.39. Quarterly sales of $17.74 billion (+9% year over year) outpaced the Street view of $17.37 billion.
TJX Companies reported fourth-quarter consolidated comparable sales growth of 5%, significantly exceeding its internal projections.
Marmaxx (U.S.) sales gained 7%, HomeGoods (U.S.) sales rose 8%, TJX Canada gained 11%, while TJX International jumped 15%.
The company reported a fourth-quarter adjusted pretax profit margin of 12.2%, rising 0.6 percentage points year over year and surpassing its expectations.
“Throughout the year, we stayed focused on our off-price fundamentals to bring customers great values, brands, and fashions as well as an exciting treasure-hunt shopping experience every day,” said Ernie Herrman, Chief Executive Officer and President of The TJX Companies.
Total inventories as of January 31, 2026, were $7.3 billion, compared to $6.4 billion at the end of fiscal 2025.
The company also announced its plan to repurchase approximately $2.50 to $2.75 billion of TJX stock during the fiscal year ending January 30, 2027.
A fourth-quarter credit-card interchange litigation settlement produced a net pretax benefit of about $221 million for TJX Companies, while also triggering one-time costs across cost of sales and SG&A.
The firm exited the quarter with cash and equivalents worth $6.230 billion.
Outlook
TJX Companies expects first-quarter GAAP earnings per share of 97 cents to 99 cents, compared with analyst estimates of $1.02.
The firm sees fiscal 2027 GAAP earnings per share of $4.93 to $5.02, compared with analyst estimates of $5.17.
For the full year fiscal 2027, TJX Companies is planning consolidated comparable sales to be up 2% to 3%, and pretax profit margin to be in the range of 11.7% to 11.8%.
The company announced that it intends to increase the regular quarterly dividend on its common stock expected to be declared in March 2026 and payable in June 2026 to 48 cents per share, subject to the approval of the company’s Board of Directors.
This would represent a 13% increase over the most recent per-share dividend.
TJX Price Action: TJX Companies shares were up 0.84% at $158.98 at the time of publication on Wednesday. The stock is trading near its 52-week high of $160.46, according to Benzinga Pro data.
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