The TJX Companies Inc. $TJX is gearing up to speed up its physical store growth after reporting strong results from recent openings. Following a solid second quarter in fiscal 2027, TJX plans to increase its annual store openings to 4% starting in fiscal 2028, up from the previous target of about 3%. This expansion includes raising the long-term global store count goal by 500 locations to 7,500 across its current brands and countries. Notably, TJ Maxx and Marshalls are expected to add 300 new stores, while HomeGoods aims for 200 more. The company is also targeting rural markets where department stores have closed, denser urban areas with smaller store formats, and clustering stores in high-performing markets. At the end of Q2, TJX operated 5,285 stores, including a positive reception for its second TK Maxx store in Spain.
Despite these growth plans, TJX’s stock has faced some headwinds recently. Shares closed at $130.08 on September 25, down 1.18% that day and falling nearly 2% over the past month, underperforming the broader retail sector and the S&P 500. The company trades at a forward P/E ratio around 23.4, slightly below the industry average, while maintaining a Zacks Rank of #2 (Buy), reflecting moderate optimism from analysts. Earnings estimates for fiscal 2027 anticipate a 3.9% increase in EPS to $1.33 per share for the upcoming quarter, with full-year earnings expected to rise over 10%. Revenue is also projected to grow by nearly 6% this year.
TJX recently benefited from a $331 million tariff refund related to the Supreme Court’s ruling on certain import tariffs, a windfall shared by several major retailers. However, like many peers, the company appears to be retaining most of these funds rather than passing savings directly to consumers. This dynamic, combined with cautious investor sentiment and competitive pressures, may be influencing the stock’s recent softness despite the promising store expansion strategy.
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