TJX Cuts Fiscal 2026 Sales Growth to 4%–5%, EPS to $4.10–$4.20
TJX lowered its fiscal 2026 net sales growth forecast to 4%–5% and sees earnings per share of $4.10–$4.20, about 5% below consensus, as consumers cut apparel and home goods spending. Comparable-store sales are projected to rise low-single digits, underscoring ongoing pressure in the off-price segment.
1. Fiscal 2026 Guidance Revision
TJX trimmed its fiscal 2026 net sales growth forecast to 4%–5% from prior mid-single-digit expectations and narrowed its earnings per share outlook to $4.10–$4.20, roughly 5% below consensus. This guidance marks a significant revision after stronger growth in previous years.
2. Consumer Spending Trends
The company attributed the weaker forecast to a pullback in consumer spending on discretionary apparel and home goods, with shoppers becoming more price-sensitive. It noted that full-price competitors have also seen slowing demand, driving more traffic to off-price channels.
3. Off-Price Retail Segment Outlook
Comparable-store sales are now projected to rise in the low-single-digit range, compared with higher gains last year, signaling continued margin pressure. The subdued outlook underscores broader challenges in the off-price retail segment as budget-conscious consumers tighten spending.