TJX stock pops on earnings beat, raises guidance

Shares of TJX Companies (TJX) are jumping in early trading on Wednesday. The retailer posted second quarter results that topped analyst estimates on both the top and bottom lines. The parent company of TJ Maxx and HomeGoods also raised its full-year profit guidance.

Morning Brief anchors Brad Smith and Seana Smith break down the results in the video above.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Stephanie Mikulich.

Video Transcript

Let's get to some trending tickers.

It's all about the retailers this week TJ X shares.

You're seeing them on screen move higher after the company beat analyst estimates on both the top and bottom line plus they raised their full year guidance.

Take a look at shares right now, pre market up 7% here and you can go net sales by division here and see increases across the board for what they call Mar Max.

You can think of that as Marshall's essentially combined with Max Home Goods TJ X, Canada TJ X International.

All of these seeing second quarter fiscal year 2025 reported sales growth, single digit percentage, high, single digit percentage for Mar Max.

And it just points back to a consumer that is looking for as we were discussing earlier, some of those value hacks right now and uh look, I'm one of them too.

I'm I'm trying to find them deals, why not?

And TJ has a lot of great deals and that's why we're seeing them being able to take more of that market share from retailers, especially when you stack it up to some of the under performance that we have seen over the last couple of quarters.

So this is very much a continuation of the thread of the story that we have been telling here all season here on Yahoo finance.

The fact that yes consumers are still spending, but they're out there looking for deals and what that really highlights is the consumer under pressure.

And because of that, you have these discount retailers like TJ X that are beating expectations that are able to raise their full year guidance in a very uncertain macroeconomic environment.

And then you compare that even to what we saw from Macy's this morning, the disappointment there, the struggle that we've seen from so many department stores here as they are trying to do everything they can to lure consumers back in their stores at a time when really the priority here is discount.

So very much is the continuation of the story.

And also why we've talked to so many analysts recently who have been saying that these discount retailers are those that are best positioned in this environment.

So again, you would think that this is a trend that very much is going to stick throughout this earnings season.