The TJX Companies, Inc. TJX is setting up for a faster pace of physical expansion after a long stretch of strong new-store performance. In the second-quarter fiscal 2027 earnings update, management cited consistently better-than-expected performance from new store openings, supporting TJX’s decision to accelerate annual store-opening growth to 4% beginning in fiscal 2028 from the roughly 3% pace discussed earlier. TJX also raised the long-term global store target by 500 locations to 7,500 stores across its existing retail banners and current countries.
The expansion opportunity is concentrated in several areas. TJ Maxx and Marshalls together now have long-term potential for 3,300 stores, reflecting an additional 300 locations, while the HomeGoods division target increased by 200 stores to 2,000. TJX also sees room to add stores in rural markets where department stores are closing, place locations closer together in markets that have supported strong comparable sales and use smaller formats to enter densely populated urban areas.
The current footprint provides a sizable base for that rollout. TJX ended the second quarter of fiscal 2027 with 5,285 stores after adding 23 locations during the quarter. The company also opened its second TK Maxx store in Spain, where customer response was described as extremely positive.
The planned acceleration reflects a broader set of store opportunities and continued strength from newer locations, with TJX focused on expanding the existing retail banners across its current countries.
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. While recent openings in existing and newer markets have been running ahead of plan, Ross Stores also targets roughly 5% annual unit growth.
Burlington Stores, Inc. BURL is also pursuing aggressive store expansion, ending the second quarter of fiscal 2026 with 1,287 locations. While 149 net new stores opened over the past 12 months, representing 13% store-count growth, Burlington Stores expects about 115 net new stores in fiscal 2026. 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 2.9% in the past month compared with the industry’s decline of 2%.
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From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 23.39X, down from the industry’s average of 27.39X.
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The Zacks Consensus Estimate for TJX Companies’ fiscal 2027 and 2028 earnings per share has inched up 2 cents each to $5.22 and $5.74, respectively, in the past 30 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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This article originally published on Zacks Investment Research (zacks.com).