Key Takeaways
- TJX beat quarterly profit estimates and raised its outlook as shoppers seeking lower prices drove up sales.
- Comparable store sales were up at all of the company’s divisions, driven entirely by customer transactions.
- The news sent TJX shares to an all-time high Wednesday.
TJX Companies ( TJX ) shares soared to a record high Wednesday as the discount clothing and home goods retailer reported better-than-expected quarterly profit and boosted its guidance as comparable store sales advanced across all its divisions.
The parent of T.J. Maxx, Marshalls, HomeGoods, and other stores posted fiscal 2025 first-quarter diluted earnings per share (EPS ) of $0.93, beating forecasts. Revenue rose 6% to $12.48 billion, in line with estimates.
Sales at Marmaxx, a combination of T.J. Maxx, Marshalls, and Sierra stores, were up 5% to $7.75 billion. HomeGoods sales were up 6% to $2.08 billion. TJX Canada sales rose 7% to $1.11 billion, and they were 9% higher to $1.54 billion at stores in Europe and Australia.
Customer Transactions Drive Sales Higher
Comparable store sales grew 3%. Chief Executive Office (CEO ) Ernie Herrman said that was at the high end of the company’s outlook and driven entirely by customer transactions. He added that the current quarter was “off to a good start,” and that the retailer saw opportunities for the balance of the year that it plans to pursue.
For the full year, TJX sees EPS in the range of $4.03 to $4.09, up from its previous prediction of $3.94 to $4.02. It anticipates pretax profit margin at 11.0% to 11.1%, up from its earlier expectation of 10.9% to 11.0%.
Shares of TJX rose 5.9% to $103.40 as of 11:40 a.m. ET Wednesday after reaching a record-high $104.98 earlier in the session. They are up about 10% year-to-date.