TLDR
- TJX stock dropped around 3-4% in premarket trading after Q2 earnings beat but Q3 guidance missed
- Q2 EPS came in at $1.22, beating the $1.19 consensus; revenue was $15.2 billion
- Q3 adjusted EPS guidance of $1.30-$1.32 fell short of the $1.35 analyst estimate
- Full-year EPS outlook was raised to $5.31-$1.36, up from $5.08-$5.15
- TJX received $331 million in tariff refunds and plans to expand its long-term store target to 7,500 locations
TJX Companies stock fell roughly 3% in premarket trading on Wednesday after the off-price retailer reported Q2 fiscal 2027 results that beat on earnings but disappointed on near-term guidance.
Q2 adjusted EPS came in at $1.22, ahead of the $1.19 analyst consensus. Revenue reached $15.18 billion, roughly in line with the $15.19 billion estimate. Comparable store sales grew 4% in the quarter.
The trouble came with Q3 guidance. TJX said it expects adjusted diluted EPS of $1.30 to $1.32 for the third quarter. Analysts were expecting around $1.35. That gap was enough to send the stock lower.
$TJX Q2’27 EARNINGS HIGHLIGHTS
🔹 Revenue: $15.2B (Est. $15.16B) 🟢; +5% YoY
🔹 Adj. EPS: $1.22 (Est. $1.19) 🟢; +11% YoY
🔹 Comparable Sales: 4%
🔹 Adjusted Pretax Margin: 11.9%; +0.5 pts YoYFY27 Guide:
🔹 Adj. EPS: $5.15-$5.20
🔹 Pretax Margin: 12.3% to 12.4%
🔹 Adjusted…— Wall St Engine (@wallstengine) August 19, 2026
Despite the Q3 miss, TJX lifted its full-year fiscal 2027 EPS outlook to $5.31-$5.36, up from a prior range of $5.08-$5.15. Full-year pretax profit margin guidance was also raised, to 12.3%-12.4% from 11.9%-12%.
Tariff Refunds Boosted the Quarter
Q2 results got a meaningful lift from a one-time item: $331 million in refunds on tariffs previously paid under the International Emergency Economic Powers Act. Stripping that out, adjusted pretax profit margin was 11.9%, up 0.5 percentage points year over year.
Net income for the quarter was $1.52 billion, or $1.36 per diluted share. That compares to $1.24 billion, or $1.10 per share, in the same period a year ago.
CEO Ernie Herrman noted that the Marmaxx division, which includes T.J. Maxx and Marshalls, posted comparable sales growth of just 1%. HomeGoods, TJX Canada, and TJX International each put up gains in the 6% to 7% range.
“The third quarter is off to a strong start, and we are seeing improvement at our Marmaxx division to start the quarter,” Herrman said.
Expansion Plans Move Forward
TJX returned $1.3 billion to shareholders in Q2 through buybacks and dividends. The company is still targeting $2.75 billion to $3.0 billion in repurchases for the full fiscal year.
On the growth side, TJX unveiled plans to increase its pace of new store openings to 4% annually starting in fiscal 2028. It also raised its long-term global store target to 7,500 locations, adding 500 to the previous target.
The broader market offered no cushion for TJX on Wednesday. The S&P 500, Dow Jones, and Nasdaq were all trading modestly higher, pointing to the selloff being entirely stock-specific.
Analyst attention in the off-price retail space has been on Ross Stores and Burlington Stores as top sector picks, which could factor into how investors position around any TJX weakness.
TJX maintained its annual comparable store sales growth outlook of 3% to 4% for fiscal 2027.
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