The TJX Companies, Inc. TJX has lifted its long-term global store target by 500 locations to 7,500 stores across its existing retail banners and current 10 countries in the latest earnings update. The company ended the second quarter of fiscal 2027 with 5,285 stores, leaving room for more than 2,200 additional locations under the revised target.
The expansion is centered partly on the U.S. business. TJX now sees TJ Maxx and Marshalls reaching a combined 3,300 stores, an increase of 300 from its prior long-term potential. The HomeGoods division’s long-term target has also been increased by 200 stores to 2,000.
The company plans to accelerate annual store opening growth to 4% beginning in fiscal 2028, up from the previously discussed 3% pace. Several factors support the higher target. Marmaxx has opportunities in rural markets where department stores are closing, while sustained comparable-store growth has created scope to place stores closer together than previously expected. Smaller-format stores also allow expansion in densely populated urban areas.
New stores have been exceeding expectations for an extended period. The additional store growth is expected to be broad-based across the company’s brands rather than concentrated in only one or two divisions. TJX Companies also expects sufficient availability of quality merchandise to support the expansion plans as it moves toward the higher store target and faster opening pace.
How TJX Stacks Up Against ROST and BURL on Store Growth
Ross Stores ROST is also stepping up physical expansion, raising its 2026 new-store opening plan to 115 locations from 110. This includes about 90 Ross Dress for Less and 25 dd’s DISCOUNTS stores. Ross Stores opened 47 stores in the second quarter of fiscal 2026. Ross Stores also targets roughly 5% annual unit growth, while recent openings in existing and newer markets have been running ahead of plan.
Burlington Stores, Inc. BURL is also pursuing aggressive store expansion, ending the second quarter of fiscal 2026 with 1,287 locations. Burlington Stores expects about 115 net new stores in fiscal 2026, while 149 net new stores opened over the past 12 months, representing 13% store-count growth. Burlington Stores remains confident in opening at least 110 net new stores annually and reaching, or likely exceeding, 1,500 stores by end-2028.
TJX’s Price Performance, Valuation and Estimates
Shares of TJX Companies have fallen 16.8% in the past month compared with the industry’s decline of 6.2%.
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From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 23.88X, down from the industry’s average of 27.82X.
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The Zacks Consensus Estimate for TJX Companies’ fiscal 2027 and 2028 earnings per share has inched up 1 cent to $5.22 and $5.74, respectively, in the past seven days.
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TJX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The TJX Companies, Inc. (TJX): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).