TJX Companies tops estimates with Q4 sales

(Sharecast News) - TJ Maxx and Marshalls owner TJX Companies impressed investors on Wednesday with forecast-beating fourth-quarter results, as underlying sales growth came in "well above" the company's own expectations. The retailer reported net sales of $17.74bn over the three months to 31 January, up 9% year-on-year, with comparable sales rising 5%. The consensus forecast was $17.4bn.

The Marmaxx division, which houses the TJ Maxx and Marshall brands in the US, reported a 7% increase in sales to $10.66bn in the fourth quarter, while HomeGoods saw an 8% increase to $3.09bn, while double-digit growth was registered in the smaller divisions of TJX Canada (+11% at $1.61bn) and TJX International (+15% at $2.38bn).

Net income improved to $1.77bn from $1.40bn the year before, with adjusted earnings per share of $1.43 beating the $1.39 market estimate. The result, which was above company targets, was helped by a 60-basis point improvement in the adjusted pre-tax margin to 12.2%.

For the full fiscal year, net sales totalled $60.37bn, up 7% over last year and 5% on a comparable basis, topping $60bn for the first time in a "major milestone for the company", according to chief executive and president Ernie Herrman.

"We had an excellent fourth quarter, with sales, profitability, and earnings per share all well above our plan. Throughout the year, we stayed focused on our off-price fundamentals to bring customers great values, brands, and fashions as well as an exciting treasure-hunt shopping experience every day," Herrman said.

"As we begin 2026, the first quarter is off to a strong start and availability of quality merchandise continues to be outstanding."

The stock was up 0.7% at $158.78 by 1524 GMT, having risen as much as 3.2% earlier on.