TJX Stock In Focus After Q3 Earnings Beat, Raised Outlook: Retail Cheers Loudly

Shares of TJX Companies, Inc. ($TJX) gained significant retail investor attention pre-market Wednesday following upbeat third-quarter (Q3) results and raised full-year guidance. 

Despite the positive performance, shares were down nearly 3% pre-market, as some investors scrutinized the company’s updated fiscal outlook.

TJX reported Q3 earnings per share (EPS) of $1.14, beating the consensus estimate of $1.10, while revenue came in at $14.06 billion, exceeding expectations of $13.95 billion. 

Consolidated comparable store sales rose 3%, while inventory levels rose slightly to $8.4 billion from the year earlier.

Ernie Herrman, TJX’s CEO, highlighted the company’s strong Q3 results, specifically a 7% comparative sales increase in its TJX International division. 

The Marmaxx segment posted a 2% same-store sales increase, while HomeGoods was up 3% and TJX Canada rose 2%.

“The fourth quarter is off to a strong start, and we are excited about our opportunities for the holiday selling season,” Herrman said.

For the fourth quarter, the company expects comparable store sales growth of 2%-3%, pre-tax profit margins of 10.8%-10.9%, and EPS between $1.12-$1.14. 

Full-year FY25 guidance was raised, with EPS now forecast at $4.15-$4.17, compared to prior guidance of $4.09-$4.13. However, the midpoint of the updated range is slightly below analysts’ consensus of $4.17.

TJX sentiment and message volume on Nov 20 premarket as of 9:00 am ET | source: Stocktwits

Retail sentiment on Stocktwits remained ‘extremely bullish,’ amid a spike in chatter, with many confident in TJX’s resilience amid broader retail challenges and its value-driven appeal.

Year-to-date, TJX stock has risen over 28%, outperforming rivals like Target (+9%) and Ross Stores (+1.15%), though it lags behind Burlington Stores’ impressive 40% surge. 

As the holiday season gains momentum, analysts and retail investors alike will be watching TJX’s ability to sustain its growth trajectory.