TJX Companies Reports 4% Q2 Comparable Sales Growth, Shares Hit All-Time High

TJX Companies reported Q2 comparable sales growth of 4%, beating the consensus expectation of +3.1%. Shares hit an all-time high on Wednesday, up 5% to $141.7. The retailer's strong results and positive outlook contributed to the stock's performance.

TJX Companies, Inc. (NYSE: TJX) reported robust second-quarter (Q2) fiscal 2026 results, with comparable sales growth of 4%, surpassing the consensus expectation of +3.1%. The retailer's strong performance, coupled with a positive outlook, drove shares to an all-time high on Wednesday, closing up 5% to $141.7.

The company's net sales for Q2 FY26 were $14.4 billion, representing a 7% increase compared to the same period last year. Comparable sales increased by 4%, which was above the company's plan. This growth was driven by strong demand across all divisions, including Marmaxx (U.S.), HomeGoods (U.S.), TJX Canada, and TJX International (Europe & Australia) [1].

Net income for Q2 FY26 was $1.2 billion, with diluted earnings per share (EPS) of $1.10, up 15% from the same period last year. The company's pretax profit margin of 11.4% was well above the planned margin and the prior year's margin of 10.9%. Gross profit margin improved to 30.7%, primarily due to favorable hedges, while SG&A costs decreased to 19.5% of sales, driven by operational efficiencies [1].

TJX Companies also returned $1.0 billion to shareholders during Q2 FY26 through share repurchases and dividends. The company repurchased 4.1 million shares of TJX stock for $515 million and paid $474 million in dividends. For the first half of FY26, the company returned a total of $2.0 billion to shareholders [1].

Looking ahead, TJX Companies expects Q3 FY26 comparable sales to increase by 2% to 3%, with pretax profit margin expected to be between 12.0% and 12.1%. Full-year FY26 comparable sales are expected to grow by 3%, with pretax profit margin projected to be in the range of 11.4% to 11.5%. Diluted EPS for the full year is expected to be between $4.52 and $4.57, representing a 6% to 7% increase over the prior year [1].

The company's strong results and positive outlook contributed to the stock's performance, with shares hitting an all-time high on Wednesday. TJX Companies' ability to maintain high profit margins and return cash to shareholders while continuing to invest in growth positions it well for future success.

References:
[1] https://www.nasdaq.com/press-release/tjx-companies-inc-reports-q2-fy26-results-comp-sales-growth-4-pretax-profit-margin