Ross Stores Grew Comparable Sales 10%. TJX Grew 4%. Only One Stock Went Up.
Ross Stores reported a 10% increase in comparable sales for Q2 2027, with total sales rising 13% to $6.3B. Net income increased to $851M, and EPS of $2.66 exceeded guidance. Ross raised its outlook, expecting 6-7% comparable sales growth in Q3. TJX reported a 4% increase in comparable sales, with revenue up 5% to $15.2B and EPS up 24% to $1.36. Despite raising its full-year outlook, TJX's stock fell due to slowing growth in its Marmaxx division. Ross's stock rose over 4%, while TJX's stock decli
How this was made
The 30-second read
Why it matters
Ross's stronger comparable‑sales growth and raised outlook suggest a relative outperformance, while TJX's modest outlook may lead to relative underperformance.
Market read
Earnings and guidance divergence creates a clear trade idea between the two leading off‑price retailers.
What to watch
Tariff refund contribution to earnings and potential inventory constraints are not fully priced in.
Background
Both Ross Stores (ROST) and TJX Companies (TJX) released their fiscal Q2 2027 results covering the same 13‑week period.
Ticker impact
Ross Stores reported Q2 comparable sales up 10% and raised its Q3 outlook to 6‑7% comparable sales, beating guidance and prompting a >4% stock jump.
Expect continued price appreciation in the near term as investors price in stronger traffic and higher guidance.
The beat was driven by traffic growth and a clear guidance raise, which historically moves the stock higher.
TJX posted Q2 comparable sales up 4% and raised margin guidance, but its outlook for Q3 is only 2‑3% comparable sales growth, leading to a 4% stock decline.
Potential further downside as the market digests slower comparable sales growth outlook.
Guidance below expectations and slower growth in its flagship division weigh on valuation.
Market effects
Off‑price retail sector may see a rotation toward Ross as its traffic growth outpaces peers.
U.S. consumer discretionary sentiment reinforced by divergent guidance.
Highlights the importance of comparable‑sales trends for global off‑price retailers.
Counterpoint
Ross's guidance may be overly optimistic; traffic growth could be unsustainable, risking a pull‑back.
Key entities
- CompanyRoss Stores
Off‑price retailer that reported 10% comparable‑sales growth.
- CompanyTJX Companies
Off‑price retailer that reported 4% comparable‑sales growth.
