Off-price retail company TJX (NYSE: TJX) beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 8.5% year on year to $17.74 billion. Its GAAP profit of $1.58 per share was 14.3% above analysts’ consensus estimates.

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Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc., stated, “I am extremely pleased with our excellent performance in 2025! Thanks to the collective efforts and sharp execution of our teams, we delivered above-plan results on both the top- and bottom-line. Annual sales surpassed $60 billion, marking a major milestone for our Company! Full year comparable sales grew a very strong 5% and overall profitability and earnings per share both increased significantly. We are pleased with the strong and consistent sales performance across all of our businesses, with each division delivering comp sales growth of 4% or better for the year. We had an excellent fourth quarter, with sales, profitability, and earnings per share all well above our plan. 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. As we begin 2026, the first quarter is off to a strong start and availability of quality merchandise continues to be outstanding. Long term, we are excited about the opportunities we see to keep growing our business and capture additional market share around the world for many years to come.”

Company Overview

Initially based on a strategy of buying excess inventory from manufacturers or other retailers, TJX (NYSE: TJX) is an off-price retailer that sells brand-name apparel and other goods at prices much lower than department stores.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.

With $60.37 billion in revenue over the past 12 months, TJX is a behemoth in the consumer retail sector and benefits from economies of scale, giving it an edge in distribution. This also enables it to gain more leverage on its fixed costs than smaller competitors and the flexibility to offer lower prices. However, its scale is a double-edged sword because there are only a finite number of places to build new stores, making it harder to find incremental growth. To expand meaningfully, TJX likely needs to tweak its prices or enter new markets.

As you can see below, TJX’s sales grew at a tepid 6.5% compounded annual growth rate over the last three years, but to its credit, it opened new stores and increased sales at existing, established locations.

This quarter, TJX reported year-on-year revenue growth of 8.5%, and its $17.74 billion of revenue exceeded Wall Street’s estimates by 2.3%.

Looking ahead, sell-side analysts expect revenue to grow 5.2% over the next 12 months, similar to its three-year rate. We still think its growth trajectory is attractive given its scale and suggests the market sees success for its products.

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Store Performance

Number of Stores

A retailer’s store count influences how much it can sell and how quickly revenue can grow.

TJX operated 5,214 locations in the latest quarter. It has opened new stores quickly over the last two years, averaging 2.6% annual growth, faster than the broader consumer retail sector.

When a retailer opens new stores, it usually means it’s investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance.

Same-Store Sales

The change in a company's store base only tells one side of the story. The other is the performance of its existing locations and e-commerce sales, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales gives us insight into this topic because it measures organic growth for a retailer's e-commerce platform and brick-and-mortar shops that have existed for at least a year.

TJX’s demand has been spectacular for a retailer over the last two years. On average, the company has increased its same-store sales by an impressive 3.9% per year. This performance suggests its rollout of new stores is beneficial for shareholders. We like this backdrop because it gives TJX multiple ways to win: revenue growth can come from new stores, e-commerce, or increased foot traffic and higher sales per customer at existing locations.

In the latest quarter, TJX’s same-store sales rose 4% year on year. This performance was more or less in line with its historical levels.

Key Takeaways from TJX’s Q4 Results

We were impressed by how significantly TJX blew past analysts’ EBITDA expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. On the other hand, its EPS guidance for next quarter missed and its full-year EPS guidance fell short of Wall Street’s estimates. Overall, this print was mixed. The stock remained flat at $156.76 immediately after reporting.

So should you invest in TJX right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).