TJX earnings beat estimates but guidance disappoints

Investing.com -- The TJX Companies Inc. (NYSE: TJX) reported fourth quarter results that exceeded Wall Street expectations, though shares fell 1.7% as investors weighed the company's outlook for the coming year.

The off-price retailer posted adjusted earnings per share of $1.43 for the fourth quarter ended January 31, beating the analyst consensus of $1.39. Revenue reached $17.7 billion, up 9% YoY and above the $17.36 billion estimate. Comparable sales increased 5%, well above the company's plan.

However, for the first quarter of fiscal 2027, TJX guided diluted EPS to a range of $0.97 to $0.99, with a midpoint of $0.98 that is below the consensus estimate of $1.02. For the full fiscal year 2027, the company expects EPS of $4.93 to $5.02, with a midpoint of $4.98, which is below the consensus expectation of $5.16.

The company's pretax profit margin expanded to 13.5% in the quarter, though this included a $0.15 per share benefit from a litigation settlement related to credit card interchange fees. Excluding this gain, adjusted pretax profit margin was 12.2%, up 0.6 percentage points versus the prior year. Annual sales surpassed $60 billion for the first time, with full year comparable sales growing 5%.

"I am extremely pleased with our excellent performance in 2025," said Ernie Herrman, CEO and President. "Thanks to the collective efforts and sharp execution of our teams, we delivered above-plan results on both the top- and bottom-line."

All divisions posted comparable sales growth of at least 4% for the year. Marmaxx grew 5% in the quarter, HomeGoods increased 6%, TJX Canada rose 7%, and TJX International climbed 4%.

The company announced plans to increase its quarterly dividend by 13% to $0.48 per share, subject to board approval. TJX also plans to repurchase $2.50 to $2.75 billion of stock during fiscal 2027.

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