TJX (TJX) Stock Forecast & Price Target

TJX Companies reported a total sales growth of 6.9% year-over-year, achieving $14.40 billion, which surpassed both the guided range of $13.9 billion to $14.0 billion and the consensus growth expectation of 5.0%. The company's operating margin for the segment expanded by 10 basis points year-over-year to 14.2%, indicating improved profitability. Additionally, year-over-year inventory increased by 13.9%, demonstrating the company's ability to effectively manage stock levels in response to consumer demand, particularly as comparable sales (comps) at Marmaxx improved by 3%.

TJX Companies expects its 3Q25 earnings per share (EPS) to fall in the range of $1.17 to $1.19, which, while slightly above the previous year's EPS of $1.14, is nonetheless below the earlier consensus estimate of $1.22. The company is guiding for a pre-tax margin of 11.4% to 11.5%, reflecting a stagnation or slight decline from the prior fiscal year's margin of 11.5% and significantly lower than the preceding consensus estimate of 12.5%. Additionally, TJX anticipates a substantial foreign exchange (FX) headwind of 300 basis points for FY25, further contributing to a negative outlook on its financial performance.