Can TJX's Global Expansion Plan Unlock its Next Growth Phase?
As The TJX Companies, Inc. TJX maintains its stronghold in U.S. off-price retail, the spotlight is now turning to the global expansion strategy as a potential engine for long-term growth. On the first-quarter fiscal 2026 earnings call, TJX emphasized continued momentum in international markets, particularly in Europe, Canada and Australia, and a planned market entry into Spain in 2026 through its TK Maxx banner.
Comparable sales in TJX International rose 5% during the quarter, with Australia singled out for 'outstanding' performance and TJX Canada also posting a solid 5% increase. The TJX Companies is also deepening footprint in emerging markets through the joint venture with Grupo Axo in Mexico and a strategic investment in Brands For Less, strengthening its presence in the Middle East.
With a well-established global sourcing network spanning more than 100 countries and a highly flexible merchandising model, The TJX Companies appears well-positioned to replicate its U.S. success across geographies. Management reaffirmed that its off-price value proposition, branded goods at everyday low prices, resonates across customer demographics and international markets alike. These attributes, coupled with the brand's adaptability and treasure-hunt appeal, form the foundation for what could be The TJX Companies' next major growth chapter abroad.
How Are BURL & COST Approaching Expansion Compared With TJX?
While TJX is betting on international expansion for growth, both Burlington Stores, Inc. BURL and Costco Wholesale Corporation COST are scaling through different store expansion strategies.
Burlington plans to open 100 net new stores in fiscal 2025, with additional momentum from acquiring 46 JOANN Fabrics leases for fiscal 2026. Burlington's strategy capitalizes on real estate availability and supports the Burlington 2.0 framework for long-term growth and store productivity.
Costco is expanding its international footprint with nine warehouse openings during the third quarter of fiscal 2025, on track to reach 914 global locations. This expansion reflects Costco's broader strategy to enhance member experience, strengthen its global footprint and drive long-term value through continued investment in new locations and operational efficiency.
TJX's Price Performance, Valuation and Estimates
Shares of The TJX Companies have risen 9.6% in the past three months compared with the industry 's growth of 8.9%.
From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 27.77X, below the industry's average of 33.53X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for The TJX Companies' current fiscal-year sales and earnings per share implies year-over-year growth of 4.4% and 4.7%, respectively.
TJX stock 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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