TJX Companies reported better-than-expected earnings, with revenue of $15.12 billion and EPS of $1.28. Same-store sales increased by 5%, beating expectations. The company raised its full-year outlook, contrasting with Target’s underwhelming results. TJX’s ability to offer value to price-sensitive consumers positions it well for the holiday season and beyond.

Quarterly commentary revealed strong same-store sales growth across operating segments. Marmaxx saw a 6% increase, while HomeGoods had a 5% growth and improved profit margin. Despite slight sales declines in Canada and internationally, gross margin exceeded expectations due to cost efficiencies and lower freight costs. The company offset tariff costs and raised its full-year guidance.

For the fourth quarter, TJX expects sales between $17.1-17.3 billion, same-store sales growth of 2-3%, and EPS of $1.33-1.36. Full-year guidance was raised, with sales expected to be $59.7-59.9 billion, same-store sales to grow by 4%, and EPS to be $4.63-4.66. TJX’s ability to deliver quality merchandise at discount prices continues to drive strong performance.

Read more at CNBC: We’re raising our price target on TJX after a strong beat and raise