TJX (TJX) Stock Forecast & Price Target

TJX Companies demonstrates a robust financial outlook as evidenced by a 10 basis point year-over-year expansion in operating margin to 14.2% in the second quarter of fiscal year 2025. Despite an anticipated increase in SG&A as a percentage of sales to 19.8%, the firm remains well-positioned, particularly in Canada, where comparable sales rose by 9% and operating margins increased by 100 basis points to 16.0%. The retailer's ability to leverage its extensive vendor relationships and maintain a treasure-hunt shopping experience continues to drive performance and customer loyalty across its diverse global store network.

The expected earnings per share (EPS) for TJX Companies in the third quarter of FY25 is projected to be in the range of $1.17 to $1.19, which, while slightly above last year's EPS of $1.14, falls short of the previous consensus estimate of $1.22. Additionally, the anticipated pre-tax margin for the quarter is guided at 12.0% to 12.1%, representing a decline of 20 to 30 basis points from 12.3% the previous year and 40 to 50 basis points below the prior consensus forecast of 12.5%. Moreover, the company's projections indicate a flat to slightly decreased pre-tax margin of 11.4% to 11.5% for FY25 compared to the previous fiscal year, raising concerns about profitability amid competitive retail pressures.