Why TJX Stock Jumped To A Record High Wednesday

Shares of TJX Companies (TJX), which operates discount retailers like TJ Maxx, HomeGoods, and Marshall’s, rose to record levels Wednesday after the company’s second-quarter fiscal 2025 results came in above expectations thanks to higher sales.

TJX reported revenue and net income each above estimates and higher than the second quarter a year ago at $13.5 billion and $1.1 billion, respectively. Comparable store sales also rose 4% from the same time last year, above the company’s own projections as traffic rose across its brands and regions.

Sales Growing Across All Brands, Regions

Comparable sales and revenue rose year-over-year across all of the segments operated by TJX like Marmaxx, the combination of Marshall’s and TJ Maxx, along with its global segments TJX Canada and TJX International.

JPMorgan analysts said in a note following the earnings that higher traffic across every division is “indicative of continued new customer acquisition,” including in the key 18 to 34 age demographic as the company has stepped up its marketing efforts. The analysts said TJX also has an opportunity to continue beating estimates and lifting its outlook in the second half of the year as TJX CEO Ernie Herrman said the third quarter is “off to a strong start.”

TJX Lifts Full-Year Profit Outlook, Expands Global Footprint

TJX lifted its outlook for the second consecutive quarter, expecting a pretax profit margin of 11.2%, up from the previous range of 11% to 11.1%, with full-year earnings per share (EPS) expected within a range of $4.09 to $4.13, up from $4.03 to $4.09 previously.

Along with its earnings report, TJX also announced a $360 million investment to acquire a 35% stake in Dubai-based Brands for Less, which operates discount stores across the United Arab Emirates and Saudi Arabia. The company said the transaction should close later this year and add to TJX’s earnings by next fiscal year, expanding TJX’s global footprint by investing in “an established, off-price retailer with significant growth potential.”

TJX shares jumped as much as 6.6% Wednesday to a new record high of $120.89, nearly 30% above where they started the year.