TJX Surpasses Sales Forecasts Amid Tariff Uncertainty in Canada

By Neil J Kanatt

()-TJX Companies upheld their yearly projections on Wednesday and mentioned the effect of U.S. tariffs, whereas strong customer demand for discounted products despite economic uncertainties led to higher-than-expected sales for the quarter belonging to the parent company of TJ Maxx.

Concerns about a possible economic downturn and rising inflation spurred by reciprocal trade barriers have led consumers to gravitate towards cheaper stores as they reassess their expenditure habits with an aim to increase savings.

TJX restated its prediction for fiscal year 2026, expecting a same-store sales increase of 2% to 3%, along with an earnings per share ranging from $4.34 to $4.43.

The firm stated that the yearly projection anticipates being able to counterbalance the substantial additional strain it has faced and still predicts due to tariffs.

"Primarily, we can achieve this via our purchasing procedures, our flexibility in modifying prices while sustaining our price differential compared to other retailers, and our capability to expand our supplier base," stated TJX’s financial director, John Klinger, during a conference following the earnings report.

The firm projected a comparable sales increase of 2% to 3% for the second quarter, as per data from LSEG, which contrasts slightly with analysts' prediction of a 2.98% gain. They anticipate an earnings per share range between 97 cents and $1, falling short of the expected $1.03.

TJX stated that their prediction for the second quarter encompasses extra financial strain due to tariff expenses on products they had previously agreed upon when new tariffs came into play.

Analysts and investors believe that off-price retailers like TJ Maxx, which depend on extensive sourcing strategies and inventory management primarily through intermediaries within the U.S., may largely avoid any immediate impact from the new China tariffs due to their business model.

"TJX generally provides cautious forward guidance, so they likely won’t stray from this approach during the current period of uncertainty," noted Simeon Siegel, an analyst with BMO Capital Markets.

TJX stocks fell by 3% during the afternoon session of trading.

In the first quarter, the company reported net sales totaling $13.11 billion, surpassing the estimated figure of $13.01 billion. Additionally, their quarterly earnings per share came to 92 cents, which exceeded the predicted 91 cents.

(Reported by Neil J Kanatt in Bengaluru; Edited by Shilpi Majumdar)