T.J. Maxx Parent TJX Says Self-Inflicted Issues Hurt 2Q Sales — 2nd Update

By Adriano Marchese and Connor Hart

T.J. Maxx parent TJX Cos. said it remains confident it can drive sales and traffic in the back half of the year, after operational missteps hurt apparel sales during the recent quarter.

Same-store sales at Marmaxx--the company's largest segment, made up of its Marshalls and T.J. Maxx banners--ticked up 1% in the period. The deceleration from 3% a year ago highlights how inflation-weary shoppers are reining in spending and growing increasingly selective with where they spend their money.

Chief Executive Ernie Herrman said sales across the division missed the company's expectations. Shares were recently trading 3.1% lower at $146.22, putting them down 5.2% year to date.

"We could have executed our store mix better, and by that I mean we could have been sharper on having the right goods in the right stores at the right time," Herrman said on a call with analysts Wednesday. "We are convinced that the issues were self-inflicted and within our control, and we have made good progress working through them."

He added that sales trends are improving so far in the third quarter, and he remains optimistic the company can course-correct in time for the holiday season. Still, company-wide comparable sales rose 4% during the latest period, as non-apparel and international sales carried the weight of lower-than-expected apparel sales in the U.S.

TJX stands to benefit from shoppers' continued focus on value in the current macroeconomic environment, Herrman said, adding that the company has a large and passionate customer base, strong brand perception and offerings that resonate across many age and income brackets.

TJX at the same time is bolstering its product mix to include a wider range of brands and more gifting items, while also planning to step up its marketing efforts ahead of the holidays.

The efforts, Herrman said, should allow the company to continue picking up market share as consumers turn to more affordable alternatives. Looking ahead, TJX raised its full-year profit guidance and said it is planning to open more stores starting next year, targeting 4% growth.

TJX now expects adjusted earnings to come in between $5.15 and $5.20 a share for the year. That is up from previous expectations of $5.08 to $5.15 a share, but still below the $5.23 a share expected by analysts, according to FactSet.

For its quarter ended Aug. 1, sales rose to $15.18 billion from $14.4 billion, topping an analyst consensus projection of $15.16 billion.

Net income came to $1.52 billion, or $1.36 a share, up from $1.24 billion, or $1.10 a share, in the same quarter a year ago. Adjusted earnings were $1.22 a share, coming in ahead of Wall Street models for $1.19 a share.

Write to Adriano Marchese at adriano.marchese@wsj.com and Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

August 19, 2026 13:21 ET (17:21 GMT)