The TJX Companies, Inc. (TJX) is likely to see top-and-bottom-line growth when it reports second-quarter fiscal 2025 earnings on Aug 21. The consensus mark for quarterly revenues is pegged at $13.33 billion, which indicates growth of 4.5% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for quarterly earnings has risen by a penny in the past seven days to 92 cents per share, which calls for 8.2% growth from the figure reported in the year-ago period. TJX has a trailing four-quarter earnings surprise of 6.2%, on average. This off-price apparel and home fashion retailer delivered an earnings surprise of 6.9% in the last reported quarter.

The TJX Companies has been benefiting from its solid store and e-commerce growth efforts. The company has been rapidly expanding its footprint in the United States, Europe, Canada and Australia. During the first quarter of fiscal 2025, the company added 18 new stores, ending the quarter with 4,972 stores.

Further, with an increasing number of consumers resorting to online shopping, The TJX Companies has undertaken several initiatives to bolster online sales and strengthen its e-commerce business. Additionally, the company has been committed to boosting growth through effective marketing initiatives and loyalty programs. We believe that The TJX Companies’ off-price model, strategic store locations, impressive brands and fashion products and efficient supply-chain management are likely to have aided its performance in the quarter under review. On its last earnings call, management stated that it began the second quarter on a positive note, which reinforces the confidence for the upcoming results. However, The TJX Companies has been dealing with the adverse impacts of the high cost of sales and operating expenses. The company expects to see incremental store wage and payroll costs during fiscal 2025, per the last earnings call. This may have affected profits to some extent in the second quarter.

Key Metrics to Watch

Analysts on Wall Street project that TJX (TJX) will announce quarterly earnings of $0.92 per share in its forthcoming report, representing an increase of 8.2% year over year. Revenues are projected to reach $13.33 billion, increasing 4.5% from the same quarter last year.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding. With that in mind, let's delve into the average projections of some TJX metrics that are commonly tracked and projected by analysts on Wall Street.

According to the collective judgment of analysts, 'Net Sales- Marmaxx' should come in at $8.24 billion. The estimate suggests a change of +4.3% year over year.

Analysts' assessment points toward 'Net Sales- TJX International' reaching $1.71 billion. The estimate indicates a year-over-year change of +5.2%.

The consensus among analysts is that 'Net Sales- TJX Canada' will reach $1.28 billion. The estimate suggests a change of +5% year over year.

It is projected by analysts that the 'Net Sales- HomeGoods' will reach $2.12 billion. The estimate indicates a change of +5.6% from the prior-year quarter.

The collective assessment of analysts points to an estimated 'Comparable store sales (YoY change) - Total' of 2.8%. Compared to the current estimate, the company reported 6% in the same quarter of the previous year.

Based on the collective assessment of analysts, 'Comparable store sales (YoY change) - HomeGoods' should arrive at 3.2%. Compared to the current estimate, the company reported 4% in the same quarter of the previous year.

The average prediction of analysts places 'Comparable store sales (YoY change) - Marmaxx' at 3.0%. Compared to the present estimate, the company reported 8% in the same quarter last year.

The consensus estimate for 'Consolidated Same Store sales- TJX International (Europe & Australia)' stands at 2.9%. The estimate compares to the year-ago value of 3%.

The combined assessment of analysts suggests that 'New Stores' will likely reach 39. Compared to the present estimate, the company reported 19 in the same quarter last year.

Analysts predict that the 'Number of stores - Total' will reach 5,011. The estimate compares to the year-ago value of 4,884.

Analysts forecast 'Number of stores - U.S. - T.J. Maxx' to reach 1,327. The estimate compares to the year-ago value of 1,305.

Analysts expect 'Number of stores - U.S. - Marshalls' to come in at 1,206. Compared to the current estimate, the company reported 1,190 in the same quarter of the previous year.

The Bottom Line

TJX Companies Inc. (TJX) is a leading off-price retailer with a strong track record of growth. The company has been benefiting from its solid store and e-commerce growth efforts, and it is well-positioned to continue to benefit from the growing trend of consumers seeking value. However, the company is facing some headwinds from inflation and the rising cost of labor. Overall, we believe that TJX is a solid investment, and we are optimistic about the company's long-term prospects. While the company's Q2 earnings report could be impacted by the recent economic challenges, the company's strong fundamentals and commitment to innovation suggest that it will continue to be a profitable enterprise in the long term.