TJX Companies Inc (NYSE:TJX) shares rose 4% ahead of Wednesday’s open after the off-price retail giant beat expectations for the second quarter and raised its full-year outlook.
The company, owner of the TJ Maxx chain, reported earnings of $1.10 per share for the quarter ended August 2, up 15% from a year earlier and well above internal targets.
Comparable sales rose 4%, with strong gains across all business segments, including a 9% increase in Canada and 5% growth at its HomeGoods division.
Net sales reached $14.4 billion, up 7% year-over-year, while pretax profit margin improved to 11.4%.
That’s a notable jump from last year’s 10.9% and reflects lower-than-expected tariff costs and better operating leverage.
“With our strong second quarter profit results, we are raising our full-year guidance for both pretax profit margin and earnings per share,” said CEO Ernie Herrman.
“The third quarter is off to a strong start, and I am very confident in our position as we enter the second half of the year.”
Ahead of the bell, the stock was up $5.28 at $139.90.