TJX Jumps on Earnings Beat, Target Sinks, Estée Lauder Falls
Aug 20, 2025
TJX is making waves in the stock market after raising its earnings forecast, showing that consumers are flocking to discount retailers amid economic uncertainty. Meanwhile, Target is facing challenges as it appoints a new CEO to revive sales, even after better-than-expected results. Estée Lauder is taking a proactive approach by hiring advisers to review its brands to address declining performance. Tune in for insights into these retail dynamics and market trends.
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insights INSIGHT
Discount Retailers Gain From Wary Shoppers
TJX raised its full-year EPS outlook after stronger-than-expected revenue, signaling shoppers shift to discount retailers amid economic worries.
Management expects to offset next year’s tariff pressures and said the current quarter is off to a strong start.
question_answer ANECDOTE
Host’s Personal Love For Marshalls
Vildana expresses personal fondness for Marshalls and describes it as a fun store that encourages impulse purchases.
Her remark illustrates why off-price retailers can attract loyal, enthusiastic shoppers.
insights INSIGHT
Leadership Change Sparks Market Doubt
Target named internal COO Michael Fiddelke as CEO, but the market reacted negatively despite solid second-quarter results and maintained guidance.
Leadership changes can create investor uncertainty that offsets operational performance in the short term.
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- TJX (TJX) shares are up after the off-price retailer raised its full-year earnings per share outlook after better-than-expected results, a sign that shoppers wary of economic uncertainty are turning to discounters. The TJ Maxx and Marshalls parent now expects full-year earnings per share of $4.52 to $4.57, up from $4.34 to $4.43. The company said it assumed it will be able to offset the significant pressure it expects from tariffs throughout next year. Revenue of $14.4 billion in the three months ending Aug. 2 beat analysts’ expectations. Chief Executive Officer Ernie Herrman said in the statement that the current quarter is “off to a strong start.”
- Target (TGT) shares fell as the retailer’s pick for an internal CEO appointment offset better-than-expected 2Q results and its maintained guidance. Target named veteran Michael Fiddelke as its next chief executive officer, betting that the insider will revive the storied retailer struggling with weak sales. The company said Wednesday the board unanimously elected Fiddelke, who currently serves as chief operating officer, to be CEO starting in February. He will also join Target’s board, while current CEO Brian Cornell, who has led the big-box retailer since 2014, will transition to focus on his role as executive chair.
- Estée Lauder Cos. (EL) shares fell today. The company said it has hired external advisers to conduct a review of the brands it owns in a bid to accelerate a turnaround after years of sales declines. Chief Executive Officer Stéphane de La Faverie said the company is rethinking its portfolio in order to “focus on our highest return opportunities over the medium to long term,” he told analysts on an earnings call. “We will share updates in due course,” he added. The company has a variety of brands that focus on selling skin care, cosmetics, haircare and fragrances. In the most recent fiscal year, sales in the company’s skin care division fell 12% because of declines in the Estée Lauder and La Mer brands. Earlier Wednesday, Estée Lauder issued a weak profit outlook for its fiscal year that was dragged down in part by tariff costs.
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