Story Stocks^®

TJX (TJX) is relatively flat after reporting its Q3 (Oct) results this morning. The company's off-price model continues to resonate with consumers and perform well despite macro uncertainty and a competitive retail environment. It beat expectations on the top and bottom line, marking its fifteenth consecutive EPS beat, while revenue increased 7.5% yr/yr to $15.18 bln, its strongest growth in seven quarters. TJX also raised FY26 EPS and revenue guidance above expectations to $4.63-4.66 and $59.7-59.9 bln, respectively, with comps now expected to be +4% (from +3%).

• Comp sales accelerated to +5%, above prior guidance, driven by a combination of higher traffic and bigger baskets, with both apparel and home categories posting strong increases.
• TJX Canada led with comps +8% (+9% in Q2), followed by Marmaxx +6% (+3% in Q2), HomeGoods +5% (+5% in Q2), and International +3% (+5% in Q2), with broad-based strength across income demographics reflecting the appeal of its value offerings.
• Importantly, its mitigation efforts fully offset tariff pressure, helping boost pre-tax margin 40 bps to 12.7% and expand gross margin 100 bps yr/yr, also aided by stronger merchandise margin and lower freight costs.
• The holiday outlook was notably positive, with TJX positioning its banners as top destinations for value-focused shoppers, supported by strong gift availability, fresh assortments flowing multiple times per week, and digital-led holiday marketing campaigns.

Briefing.com Analyst Insight

TJX continues to execute at a high level, and its off-price value proposition is clearly resonating with consumers in a still-challenging macro environment. It has consistently beat expectations on the bottom line, with healthy traffic, accelerating comps, and continued margin expansion underscoring the strength of its model. The muted reaction likely reflects the stock's proximity to all-time highs, TJX isn't an ultra-growth story, but it remains a reliable operator in discretionary retail, with value-driven traffic supporting steady share gains. Management was also bullish on the upcoming holiday season, citing strong gift availability and frequent new assortments, and TJX appears well positioned to capture demand. Longer term, its global footprint, including its joint venture in Mexico, investment in the Middle East, and planned entry into Spain in spring 2026, provides additional runway for growth.