TJX Companies raised its fiscal 2027 profit forecast on Wednesday, citing resilient demand at its off-price retail stores as consumers remain focused on lower-priced goods. However, the parent of T.J. Maxx and Marshalls projected third-quarter adjusted earnings below Wall Street expectations, sending its shares lower in premarket trading.
The parent of T.J. Maxx, Marshalls and other off-price retailers now expects fiscal 2027 adjusted earnings per share of $5.31 to $5.36, compared with its previous forecast of $5.08 to $5.15, according to Reuters.
Despite the higher full year outlook, TJX shares fell 4.6% in premarket trading after the company forecast third-quarter adjusted earnings per share of $1.30 to $1.32, excluding an expected 6-cent benefit from tariff refunds. Analysts had been expecting $1.35, according to LSEG data cited by Reuters.
TJX reaffirmed its expectation for annual comparable-store sales growth of 3% to 4%. Comparable store sales measure sales at stores and other locations open for a specified period and are commonly used by retailers to assess underlying sales momentum.
The company also received $331 million in refunds during the quarter related to a portion of tariffs it had previously paid under the International Emergency Economic Powers Act, or IEEPA. Reuters said the refunds are expected to provide a net benefit of 6 cents to third-quarter adjusted earnings per share.
TJX's off-price model is centered on selling branded merchandise at discounts to traditional retailers. The company says its stores generally offer merchandise at prices 20% to 60% below comparable regular prices, while maintaining a frequently changing assortment.
The company's latest outlook comes as retailers continue to navigate changing consumer spending patterns and tariff related costs. TJX's ability to attract shoppers seeking lower prices has supported its business, while the weaker third-quarter earnings outlook indicates that near-term pressures remain.
The combination of a higher full-year profit forecast and weaker-than-expected quarterly earnings outlook gave investors mixed signals. While TJX expects profitability for the fiscal year to be stronger than previously anticipated, its near-term earnings forecast fell short of Wall Street expectations.
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