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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
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  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
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  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

The 5 Most Interesting Analyst Questions From TJX’s Q2 Earnings Call

TJX Cover Image

TJX delivered a quarter that was well received by the market, with sales and profits ahead of Wall Street’s expectations. Management attributed the performance to broad-based strength across all divisions and noted that customer transactions increased at every banner. CEO Ernie Herrman highlighted the company’s ability to attract consumers from a range of income demographics through its focus on value and assortment. Management also credited its global buying organization’s agility and effective inventory planning for helping offset tariff pressures and support healthy merchandise margins.

Is now the time to buy TJX? Find out in our full research report (it’s free).

TJX (TJX) Q2 CY2025 Highlights:

  • Revenue: $14.4 billion vs analyst estimates of $14.16 billion (6.9% year-on-year growth, 1.7% beat)
  • EPS (GAAP): $1.10 vs analyst estimates of $1.01 (8.6% beat)
  • Adjusted EBITDA: $1.93 billion vs analyst estimates of $1.75 billion (13.4% margin, 10% beat)
  • Revenue Guidance for Q3 CY2025 is $14.41 billion at the midpoint, below analyst estimates of $14.72 billion
  • EPS (GAAP) guidance for the full year is $4.55 at the midpoint, roughly in line with what analysts were expecting
  • Operating Margin: 11.2%, in line with the same quarter last year
  • Locations: 5,134 at quarter end, up from 5,001 in the same quarter last year
  • Same-Store Sales rose 4% year on year, in line with the same quarter last year
  • Market Capitalization: $152.5 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From TJX’s Q2 Earnings Call

  • Matthew Boss (JPMorgan): Asked about the consistency of comparable sales in a volatile environment. CEO Ernie Herrman emphasized the flexibility of the business model and strong product availability as key to stable performance.
  • Brooke Roach (Goldman Sachs): Inquired about pricing strategy and market share gains in light of industry price increases. Herrman explained TJX’s approach of benchmarking prices to competitors and maintaining value gaps on a case-by-case basis.
  • Lorraine Hutchinson (BofA): Questioned the role of pricing in mitigating tariff impacts and customer reactions to higher prices. Herrman noted that transaction growth, not just pricing, drove comps and that buyers leveraged market excess to offset tariffs.
  • Dana Telsey (Telsey Advisory Group): Asked about the sustainability of merchandise margins and store expansion plans. CFO John Klinger pointed to ongoing cost efficiencies, favorable buying conditions, and a robust pipeline for new and remodeled stores.
  • Marni Shapiro (Retail Tracker): Probed the company’s emphasis on gifting and changes in consumer behavior. Herrman described a strategic shift toward positioning TJX as a year-round gifting destination, supported by enhanced merchandising and product selection.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be watching (1) TJX’s ability to sustain customer traffic and expand market share through the back-to-school and holiday shopping seasons, (2) how effectively the company manages merchandise margins in the face of ongoing tariffs and cost headwinds, and (3) the impact of new store openings, remodels, and expanded gifting categories on overall sales growth. Execution in managing inventory flow and adapting to regional consumer trends will also be key markers of performance.

TJX currently trades at $136.78, up from $134.61 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).

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