Key Takeaways for TJX Stock as of August 2026
- Above-Plan Beat: TJX posted Q2 adjusted EPS of $1.22, up 11% YoY, on a 4% consolidated comp gain that ran above plan even as Marmaxx delivered just a 1% comp.
- Guidance Raise: Management lifted full-year adjusted EPS guidance to $5.15 to $5.20, up 9% to 10% YoY, and raised the full-year pretax margin outlook to 12.0% to 12.1%.
- Store Growth Expansion: TJX raised its long-term store target by 500 units to 7,500 and plans to accelerate annual store growth to 4% starting next year, adding 300 T.J. Maxx and Marshalls locations and 200 HomeGoods locations to the runway.
- Execution Admission: CEO Ernie Herrman called the Marmaxx slowdown “entirely self-inflicted and within our control,” pointing to merchandise mix misses rather than any pricing or competitive pressure.
TJX stock just absorbed a mixed quarter and still walked away with a raised guide. That tension between a stumbling flagship division and a raised full-year outlook is exactly what investors need to see clearly before deciding what the print means. See how TJX stock’s Q2 numbers stack up on TIKR for free →
TJX Stock Rides HomeGoods and Canada Strength Through a Marmaxx Stumble
TJX (TJX) reported second-quarter fiscal 2027 results on August 19, 2026, with consolidated comparable sales up 4%, ahead of the company’s own plan. Adjusted diluted earnings per share came in at $1.22, up 11% year over year and well above what management had guided for. The strength did not come evenly across the business. Marmaxx, the T.J. Maxx and Marshalls division that anchors TJX, posted a comp gain of just 1%, driven entirely by a higher average basket while transactions slipped slightly.
The other three divisions carried the quarter. HomeGoods delivered a 7% comp increase with segment profit margin up 240 basis points to 12.4%, powered by both traffic and basket growth. TJX Canada comped 6%, and TJX International, covering Europe and Australia, comped 7% with segment margin up 210 basis points to 7.3%. That divergence is what management spent the call explaining. CFO John Klinger attributed the divisional split partly to tariff-related favorability lifting merchandise margin, pushing adjusted gross margin to 31.4%, up 70 basis points from last year.
Herrman was direct about what went wrong at Marmaxx. Addressing the shortfall on the Q2 earnings call, he said the issue traced to “not having the right goods in the right stores at the right time,” adding that the team is “convinced that the issues were self-inflicted and within our control.” That admission matters because it rules out the alternative explanation investors often reach for first: competitive pressure or pricing weakness. Management measured comp performance at stores near direct off-price competitors versus stores farther away and found no difference, reinforcing that the gap is execution, not market share loss.
The response showed up in the guide. TJX raised full-year adjusted pretax profit margin guidance to 12.0% to 12.1%, up 30 to 40 basis points from last year’s 11.7%, and lifted full-year adjusted EPS guidance to a range of $5.15 to $5.20, up 9% to 10% from last year’s $4.73. Management also expanded its long-term store target by 500 units to 7,500 stores, with 300 incremental T.J. Maxx and Marshalls locations and 200 incremental HomeGoods locations, and plans to accelerate annual unit growth to 4% starting next year. Herrman said he expects Marmaxx improvement to build “by the holiday selling season.”
TJX stock just showed how three divisions can outrun one. Compare the segment data yourself on TIKR for free →
TIKR Values TJX Stock at $209, Pricing In a Marmaxx Recovery
TIKR’s mid-case model values TJX stock at $209 by January 2031, implying a 44% total return from the current price of $145, or 9% annualized over 4.4 years.
That annualized return sits above what a mature, low-single-digit-growth retailer typically offers, reflecting TJX’s combination of steady margin expansion and an accelerating store count rather than reliance on comp sales alone. The model’s mid-case revenue growth assumption of 5% and net income margin assumption of 9.5% both sit within reach of what TJX just delivered, given HomeGoods, Canada, and International each posted comps between 6% and 7% this quarter.
The target is reachable because the earnings call showed the Marmaxx shortfall is isolated and already being corrected, while three of TJX’s four divisions are compounding at rates well above the model’s baseline assumptions. A 500-store increase in the long-term unit growth target adds a structural growth lever the model did not need last quarter to justify its return profile.
TJX stock’s model points to $209 by 2031. See the full assumptions behind that target on TIKR for free →
Should You Invest in The TJX Companies, Inc.?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
