TJX (NYSE:TJX) shares fell around 4% in Wednesday premarket trading after the retailer issued a third-quarter earnings forecast below Wall Street expectations, overshadowing stronger-than-expected quarterly profit and an increase to its full-year guidance.
For the second quarter, TJX reported earnings per share of $1.22, ahead of the $1.19 analyst consensus. Revenue reached $15.2 billion, broadly matching expectations of $15.19 billion, while consolidated comparable sales increased 4%.
Adjusted pretax profit margin improved by 0.5 percentage points to 11.9%, while adjusted gross profit margin climbed 0.7 percentage points to 31.4%, supported by a stronger merchandise margin.
The retailer also outlined plans to accelerate annual store growth to 4% beginning in fiscal 2028 and increased its long-term target for its global store network to 7,500 locations.
“I am very pleased with our above-plan consolidated results in the second quarter. Overall comparable sales increased 4%, above our plan, and both profitability and earnings per share well exceeded our expectations,” Ernie Herrman, CEO of TJX.
Looking to the third quarter of fiscal 2027, TJX expects adjusted diluted earnings per share of between $1.30 and $1.32, falling short of the $1.34 consensus forecast. Consolidated comparable sales are projected to increase 2% to 3%, while adjusted pretax profit margin is expected to reach 12.3% to 12.4%. The company said additional IEEPA tariff refunds are expected to provide a benefit to cost of sales.
For the full 2027 fiscal year, TJX increased its earnings per share forecast to between $5.15 and $5.20, compared with its previous range of $5.08 to $5.15. The revised outlook nevertheless remains below the analyst consensus of $5.22.
TJX continues to forecast full-year comparable sales growth of 3% to 4% and raised its adjusted pretax profit margin guidance to between 12.0% and 12.1%.
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