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TJ Maxx, Target Execs Say They're Poised to Offset Nearly All the Impacts of Tariffs

Wed May 21, 2025

Sarina Trangle

2 min read

In This Article:

Erik McGregor / LightRocket via Getty Images TJX, the owner of Marshalls, is among companies that expect to mitigate most impacts from tariffs.

Erik McGregor / LightRocket via Getty Images TJX, the owner of Marshalls, is among companies that expect to mitigate most impacts from tariffs.

  • The TJX Companies, the parent company of TJ Maxx and Marshalls, maintained the same full-year outlook it shared last quarter, despite dramatic changes in U.S. trade policy.

  • TJX executives believe the company can offset most of the impacts of tariffs.

  • Target leaders also believe the retailer can mitigate most the effects of tariffs, but still adjusted their outlook for the year ahead.

Tariffs haven’t touched the outlook at TJ Maxx and Marshalls.

The TJX Companies (TJX), the parent company of the off-price stores, repeated the same full-year forecast it gave last quarter while releasing its first-quarter results on Wednesday. The company still expects comparable sales to grow 2% to 3% year-over-year in fiscal year 2026, giving investors $4.34 to $4.43 diluted earnings per share (EPS), according to press releases.

The most recent outlook assumes tariffs remain at their current levels, TJX said. (As of this writing, those are 10% on goods from many nations and 30% on imports from China.) Deficit-based tariffs on many U.S. trade partners were not yet unveiled when TJX released its 2026 estimates in February.

“The Company’s full year Fiscal 2026 guidance assumes that it can offset the significant incremental pressure it has experienced and continues to expect from tariffs,” TJX said in its release Wednesday.

Tariffs, however, dented Target’s (TGT) forecast, the retailer announced Wednesday. The company expects to end its 2025 fiscal year with sales down by a low, single-digit percent, rather than the net sales growth of about 1% announced in March. Target also moved down the range of adjusted EPS it expects to $7 to $9 from $8.80 to $9.80, according to press releases.

“This wider range reflects the expected impact of tariffs and heightened uncertainty regarding the economy and consumer spending,” CFO Jim Lee said on an earnings conference call, according to a transcript made available by AlphaSense.

Raising prices “is the very last resort” Target will take to mitigate tariffs, which the company expects it can “offset the vast majority” of, CEO Brian Cornell said during the earnings call. Target is trying to avoid price increases by working with vendors, potentially shifting where some goods are produced and adjusting the assortment of merchandise sold.

Still, the shift in trade policy may weigh on consumers and depress demand for discretionary items, executives said.

"For several years now, we've seen pressure in our discretionary businesses, as spending adjusted down from elevated levels during the pandemic," Cornell said, according to the transcript.

Read the original article on Investopedia