TJX (TJX) - Down Despite a Beat
TJX (TJX) fell in early trading even after strong results. Quarterly sales topped $15 billion, slightly above estimates and up from $14.44 billion a year earlier. Comparable-store sales rose 4%; a 3% comp reflects healthy consumer spending, per Jeron Martis, director of consumer research at Els. Adjusted earnings came in at $1.22 per share, beating expectations.
Results were uneven across segments. HomeGoods comps jumped 7%. Marmax, which covers TJ Maxx and Marshalls in the US, rose only 1%, below expectations. Shoppers hunting for value still find deals at HomeGoods and keep improving the homes they own rather than spending big at Home Depot (HD) or Lowe's (LOW).
Cautious third-quarter guidance explains much of the share pressure. TJX guided Q3 adjusted EPS of $1.30 to $1.32, weaker than expected, with sales growth of about 2% to 3%. The consumer is still spending but stays focused on value.
Estée Lauder (EL) - Up 15% on a Turnaround
Estée Lauder (EL) surged 15% after its latest results showed the turnaround gaining traction. It posted higher sales, a narrower loss, and adjusted EPS of 39 cents versus the 32 cents expected. Revenue topped $3.6 billion, also a beat. The net loss narrowed sharply to $116 million, down from $546 million a year ago.
Skincare and fragrance led the way. Skincare sales rose 8.7%; fragrance jumped 10%, a high-margin category. Makeup grew a more modest 2.9%, and the company expects makeup to return to growth in the new fiscal year. Hair care was the weak spot, down 0.7%. Cost cutting remains in play and helped narrow the loss.
Fragrance stays a lucrative area, favored by Hollywood names. One possible driver: as more workers face return-to-office mandates, more people may buy fragrance, though direct evidence for this is unclear.
Toll Brothers (TOL) - Up 7% on High-End Buyers
Toll Brothers (TOL), a luxury home builder, rose 7% after beating on both the top and bottom line. Revenue reached $2.66 billion, better than expected though down from a year ago. EPS came in at $2.97, also a beat. Resilient high-end buyers are supporting the sector and offsetting a still-challenging housing market heading into 2027.
The company delivered fewer homes at higher prices. Home sales fell to $2.65 billion, and deliveries dropped about 10% from a year ago, but the average selling price rose to nearly $1,096,400. UBS (UBS) noted signs of stabilization in housing, though the 30-year mortgage rate sat at 6.75% the prior day, still high.
