TJX has perfected the “treasure hunt” shopping experience that continues to resonate with value-conscious consumers. This unique approach has allowed the company to thrive even as traditional retail faces challenges from e-commerce and changing consumer preferences.
A flexible operational model lets the firm adapt quickly to market changes and consumer trends. This agility, combined with the value proposition of brand-name and designer merchandise at 20% to 60% below regular retail prices, positions the company for continued success in various economic environments.
THE TJX COMPANIES (New York symbol TJX; tjx.com), is a leading off-price retailer of clothing, accessories and home fashions. Off-price retailers purchase merchandise at below-wholesale prices and charge less than retail prices.
Through their shares, investors tap a network of stores. In the U.S., TJX operates 1,333 T.J. Maxx locations, 1,230 Marshalls, 943 HomeGoods, 117 Sierra Trading Post outlets and 72 HomeSense locations. In Canada, it has 307 Winners outlets, 160 HomeSense locations and 109 Marshalls stores. TJX also operates in Europe, with 655 TK Maxx and 75 Homesense stores; and in Australia, with 84 TK Maxx outlets.
TJX is expanding its global footprint through a joint venture in Mexico. Mexican retailer Grupo Axo will own 51% of the joint venture, and TJX will own 49%.
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The collaboration will incorporate Axo’s existing off-price, brick-and-mortar retail operations in Mexico, encompassing more than 200 stores under its Promoda, Reduced, and Urban Store brands.
The new joint venture should be a good fit for TJX. It draws on TJX’s extensive experience as a global off-price retailer, plus Axo’s established network of off-price stores and the company’s three decades of operational expertise in Mexico.
Growth Stocks: TJX stands to gain from Trump’s tariffs
Overall revenue in the quarter ended February 1, 2025, fell 0.4%, to $16.35 billion from $16.41 billion a year earlier. However, the year-ago quarter included an extra week. Comparable same-store sales increased 5.0%. Excluding the extra three months, TJX made $1.23 a share, up 9.8% from $1.12.
The company will raise its quarterly dividend by 13.3% with the June 2025 payment, to $0.425 from $0.375 a share. The shares now yield 1.3%. The increase is the company’s 28th over the last 29 years.
TJX appear well poisoned to weather the Trump administration’s tariffs. In fact, as other retailers take in a lot of inventory to get ahead of tariffs, they likely won’t be able to sell everything—and that’s a big plus for TJX’s team of buyers.
Recommendation in Power Growth Investor: The TJX Companies is a buy.
