Benefiting from the trend of downgrading consumption, American discount retailer TJX (TJX.US) exceeded expectations in revenue and profits in Q3, and raised its full-year performance outlook.

American discount retailer TJX (TJX.US) reported better-than-expected performance for the third quarter of fiscal year 2026 and raised its full-year performance guidance. The financial report shows that TJX's third-quarter revenue increased by 7.5% year-on-year to $15.12 billion, exceeding market expectations by $260 million; GAAP earnings per share were $1.28, beating market expectations by $0.06; and comparable store sales grew by 5%, also surpassing market expectations. In recent months, retailers have been warning that tariff policies will raise commodity prices. This will exacerbate the inflation pressure that has persisted for several years, further squeezing consumer budgets. However, at the same time, this environment has also created a competitive advantage for discount retailers like TJX. TJX is the largest discount retailer of shoes, clothing, accessories, and home goods in the United States, operating chain brands such as TJ Maxx and Marshalls. The company's chain stores acquire unsold inventory from full-price stores and sell designer products and brand goods at discounted prices. The company's third-quarter revenue exceeding market expectations indicates that consumers are turning to more affordable shopping choices as signs of economic pressure emerge in the United States. Looking ahead, TJX currently expects comparable store sales for fiscal year 2026 to grow by 4%, up from the previous estimate of 3%; pre-tax profit margin for the full year is expected to be 11.6%, up from the previous estimate of 11.4%-11.5%; and diluted earnings per share for the full year are expected to be $4.63-4.66, ahead of the market's general expectation of $4.60, previously estimated at $4.52-4.57. The company also expects comparable store sales for the fourth quarter of fiscal year 2026 to increase by 2%-3%, pre-tax profit margin to be 11.7%-11.8%, and diluted earnings per share to be $1.33-1.36 (market expectation is $1.37). The company stated that its guidance for the fourth quarter and full year of fiscal year 2026 is based on the assumption that the levels of U.S. import tariffs as of November 19, 2025 will remain unchanged for the remaining time of this fiscal year. The company expects to continue to offset the expected pressure from tariffs in the fourth quarter of fiscal year 2026.