TJX Stock Drops Despite Earnings Beat
The TJX Companies (NYSE: TJX) stock fell nearly 6% in early trading on Wednesday despite reporting better-than-expected earnings and sales. The company reported non-GAAP earnings of $1.22 per share, beating analyst estimates by three cents, while revenue came in at $15.2 billion—roughly matching expectations. Same-store sales rose faster than anticipated, growing 4% year over year. However, the stock's decline was attributed to underperformance from Marmaxx, TJX’s largest division that includes T.J. Maxx and Marshalls. Management warned of slower growth in Q3, forecasting only a 2%-3% increase. While full-year earnings guidance remains stable at $5.33 per share (GAAP), the company acknowledged these figures include one-time tariff refund gains. Analysts noted that TJX is currently valued at around 28 times its projected annual earnings with growth expectations of only high single digits, making it potentially overvalued for a retail stock.
Topics: earnings retail stock_performance