TJX Stock Gains On Q2 Beat, Retail Bulls Charge On Raised Annual Forecasts

TJX Cos Inc (TJX) shares jumped 5% in morning trade on Wednesday after the off-price retailer reported upbeat second quarter earnings, with Telsey Advisory Group noting that it was a solid quarter with strength across divisions, which supported an annual outlook raise.

Retail sentiment on TJX improved to ‘extremely bullish’ from ‘bullish’ territory a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

Telsey Advisory Group maintained its ‘Outperform’ rating. “Increased transactions across all divisions drove comparable gains in the second quarter, marking the ninth consecutive quarter of positive comps across the brand portfolio,” Dana Telsey of Telsey Advisory Group said.

TJX said it now expects consolidated comparable sales to be up 3%, compared with the prior forecast of up 2% to 3%. The company also forecast earnings per share (EPS) to be between $4.52 and $4.57, up from the previous expectation of $4.34 to $4.43.

“Despite ongoing macroeconomic challenges, TJX continues to demonstrate resilience and consistency,” Dana Telsey said, adding that the company’s repeated earnings beats highlight the strength of its value-focused proposition, which continues to resonate with consumers amid an increasingly price-sensitive environment.

TJX’s second-quarter net sales came in at $14.40 billion, compared with Wall Street expectations of $14.17 billion, according to data compiled by Fiscal AI. The company reported EPS OF $1.10, topping estimates of $1.01.

Dana Telsey noted that a favorable off-price buying landscape continues to enable TJX to meet traffic and demand effectively. She said the brokerage expects TJX to continue gaining profitable market share with TJX remaining well-positioned to benefit from consumers’ heightened focus on value across income levels.

TJX stock has gained 16.5% so far this year and jumped 17% in the last 12 months.

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