Quarterly sales and profit narrowly beat analyst estimates, but the retailer's outlook falls short of projections
TJX Cos.' stock pulled back Wednesday from a record close earlier this week, after the retailer said tariff costs could cause it to fall short of Wall Street's fiscal second-quarter earnings projections.
The Framingham, Mass.-based retailer (TJX) said it expects a profit for the current quarter of 97 cents a share to $1.00 a share, below the latest FactSet consensus estimate of $1.03 a share.
It's also expecting full-year 2025 earnings of $4.34 a share to $4.43 a share, while analysts had been looking for $4.49 a share.
The outlook includes the company's estimated impact from tariff costs on the merchandise it committed to buy when additional tariffs were announced in March and April.
The stock slumped 3% in afternoon trades, as the broad market fell sharply.
The stock is on track for its first one-day post-earnings decline in six quarters. It had closed at a record $135.03 a share on Monday.
For the first quarter to May 3, profit fell to $1 billion, or 92 cents a share, from $1.07 billion, or 93 cents a share, in the year-ago quarter, but beat the analyst estimate of 91 cents a share.
Total sales rose 5% to $13.1 billion, ahead of the FactSet consensus of $13.02 billion, while comparable-store sales, or sales of stores open more than a year, grew 3% to fall slightly short of expectations of 3.1% growth.
"We have historically attracted new shoppers to our stores in many different types of environments," Chief Executive Ernie Herrman said on the company's quarterly earnings call with analysts. "We are convinced that we will have an opportunity to gain market share if more consumers seek out value in the current environment."
TJX's HomeGoods stores reported a 4% rise in same-store sales in the first quarter, as well as an increase in total sales to $2.25 billion from $2.08 billion.
"We believe our U.S. home banners offer consumers a highly differentiated mix of home fashions from around the world," said Financial Chief John Joseph Klinger. "We are convinced that we can continue to grow our share of the U.S. home fashions market."
Sales beat expectations, as the company noted an increase in customer transactions drove comp results.
Jefferies analyst Corey Tarlowe reiterated a buy rating on TJX and said the company turned in a solid quarter, although its gross margins missed estimates, mostly due to negative mark-to-market inventory hedge adjustments.
TJX's stock has climbed 9.4% in 2025, while the S&P 500 index SPX has gained 0.4%.
-Steve Gelsi
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