TJX (TJX) Stock Forecast & Price Target

TJX Companies is positioned for continued financial success, evidenced by a 10 basis point year-over-year expansion in its segment operating margin to 14.2% in the second quarter of 2025. Additionally, the company has demonstrated solid growth in Canada, achieving a 9% increase in comparable store sales and a 100 basis point improvement in operating margins to 16.0% in constant currency, reflecting strong brand loyalty. Furthermore, while selling, general, and administrative expenses (SG&A) as a percentage of sales are projected to increase by 30 basis points year-over-year to 19.8%, the overall financial metrics indicate a resilient business model capable of capitalizing on its extensive inventory sourcing strategy and consumer appeal.

TJX Companies is projecting third-quarter earnings per share (EPS) in the range of $1.17 to $1.19, which, while higher than last year’s EPS of $1.14, falls short of the previous consensus estimate of $1.22. Furthermore, the company anticipates a pre-tax margin of 11.4% to 11.5%, indicative of stagnation or a potential decrease compared to the 11.5% achieved in FY24, as well as a lower quarterly pre-tax margin guidance of 12.0% to 12.1%, which represents a decline from 12.3% last year and substantially below the forecast of 12.5%. These factors contribute to a negative outlook, highlighting potential challenges in maintaining profitability and meeting market expectations.