Key Highlights
- First quarter revenue reached $14.32B, climbing 9.2% from last year and exceeding projections by $310M
- Adjusted earnings per share landed at $1.19, rising 29% annually and surpassing analyst estimates by $0.19
- HomeGoods division saw comparable store sales surge more than 100% year-over-year
- Full-year earnings guidance elevated to $5.08–$5.15 range; quarterly dividend increased 13% to $0.48
- Second quarter outlook trails expectations with EPS forecast of $1.15–$1.17 versus $1.19 Street estimate
Shares of TJX Companies (TJX) soared over 4% during Wednesday’s premarket session following the discount retailer’s impressive first quarter results that exceeded analyst projections on multiple fronts.
The equity opened trading at $150.87, positioned to extend its winning streak to five consecutive sessions as the market opened.
First quarter sales totaled $14.32 billion, representing a 9.2% increase from the prior year period and landing $310 million above analyst forecasts. Adjusted earnings of $1.19 per share exceeded both Street expectations and internal projections by $0.19, marking a robust 29% increase compared to the same quarter in 2024.
CEO Ernie Herrman highlighted the exceptional performance. “Sales, pretax profit margin, and earnings per share were all well above our plan,” he noted.
The HomeGoods banner emerged as a standout performer. Comparable sales at HomeGoods locations more than doubled versus the year-ago period. Companywide same-store sales climbed 6%, accelerating from the 3% growth recorded last year and beating the 3.95% analyst projection.
The company’s Canadian operations also delivered double-digit sales increases, underscoring the widespread momentum throughout TJX’s retail network.
Company Elevates Full-Year Projections
Capitalizing on the robust first quarter showing, TJX upgraded its full-year earnings per share forecast to a range of $5.08–$5.15, improving from the previous guidance of $4.93–$5.02. The new midpoint of $5.12 aligns with Wall Street consensus.
The retailer also enhanced its full-year comparable store sales outlook, now projecting growth of 3%–4% compared to the earlier 2%–3% range. Pretax profit margin expectations were lifted to 11.9%–12.0%.
Additionally, TJX boosted its quarterly dividend payment by 13%, rising from $0.43 to $0.48 per share, which translates to an annualized distribution of $1.92 — yielding approximately 1.3%.
Near-Term Guidance Disappoints
Despite the strong quarter, not all forward-looking metrics impressed investors.
For the second quarter, TJX projects comparable store sales growth of 2%–3%, falling short of the 3.42% analyst expectation. The company’s EPS guidance range of $1.15–$1.17 also comes in below the $1.19 consensus forecast. Second quarter pretax profit margin guidance of 11.4%–11.5% similarly trails the 11.6% Street estimate.
However, the cautious short-term outlook did little to curb investor optimism, as shares continued their upward trajectory in premarket activity.
Competing off-price retailers benefited from TJX’s strong performance. Ross Stores (ROST) and Burlington (BURL) both traded higher in sympathy with TJX’s results.
Wall Street analysts entered earnings season already bullish on the stock. JPMorgan lifted its price target to $174 prior to the report while maintaining an overweight rating. Truist launched coverage with a buy recommendation and $175 price objective. Barclays maintains an overweight stance with a $183 target.
Among analysts followed by MarketBeat, three assign TJX a strong buy rating while twenty-two rate it a buy. The consensus price target stands at $169.25.
Institutional ownership accounts for 91.09% of outstanding shares. On the insider front, CEO Herrman divested 30,000 shares on March 2nd at an average sale price of $160.95.
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