On Wednesday, people seemed more willing to shop at stores operated by TJX Companies (TJX 1.32%) than buy its stock. The retail conglomerate posted fourth-quarter and full-year fiscal 2026 results that investors found wanting; they indicated their displeasure by trading the shares down by more than 1% that day.
Down about numbers that went up
TJX booked net sales of $17.7 billion in the quarter, up 9% from the same period of fiscal 2025, on comparable sales that advanced 5% and matched the full-year result. Net income in accordance with generally accepted accounting principles (GAAP) was $1.8 billion. On a per-share basis, this was $1.58, up 28% year over year. Under non-GAAP (adjusted) standards, that earnings per share (EPS) figure was $1.43, marking a 16% improvement.
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Both headline numbers edged past the consensus analyst estimates. Collectively, the prognosticators tracking TJX were modeling just under $17.4 billion on the top line, and an adjusted EPS figure of $1.39.
In the earnings release, the company quoted CEO Ernie Herrman as saying that "Throughout the year, we stayed focused on our off-price fundamentals to bring customers great values, brands, and fashions as well as an exciting treasure-hunt shopping experience every day."
NYSE: TJX
Key Data Points
Concerned about comps
With the new year came new guidance. TJX provided forecasts for both the current quarter and the full 2027 fiscal year. For the 12-month period, it's expecting comparable sales growth of 2% to 3%, which would be notably lower than the 2026 figure. GAAP EPS should land at $4.93 to $5.02, a range below the average analyst estimate of $5.18 per share.
TJX's trailing performance was impressive, but as we all know, stocks trade more on future potential than history, hence the mild Wednesday sell-off. Although the company is still anticipating growth in the coming months with that guidance, I don't see much that makes this retail stock more attractive than its peers.
