In this edition of the Glossy+ Research Briefing, we analyze quarterly financial results from retail giants TJX Companies, Walmart and Target.
Walmart and TJX Cos. report positive results for the third quarter of FY2025, while Target struggles
Although banner fall shopping events like the Halloween holiday and back-to-school promotions typically drive third-quarter sales for the nation’s biggest retailers, yesterday Target reported approximately flat comparable third-quarter sales. Rivals TJX Companies, which owns TJ Maxx, Marshalls and Homegoods, and Walmart reported opposite results this week. Both retailers saw an increase in sales compared to the same quarter last year.
“Consumers tell us their budgets remain stretched, and they are shopping carefully,” said Target CEO Brian Cornell during a conference call with investors. Consumers are “focusing on deals, and stocking up when they find them.”
Meanwhile, TJX Cos. is expanding internationally. “I want to specifically highlight our European team for their strong results, which drove the 7% comp increase at our TJX International division,” said Ernie Herrman, CEO and president of TJX Cos.
The discount retailer is now expanding into Mexico and South America through a joint venture with multi-brand retailer Grupo Axo. The deal is expected to close later this year with TJX Companies taking a 49% stake in Axo’s off-price, physical store business in Mexico, which includes designer, luxury, lifestyle, sportswear, footwear and beauty products.
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Following Walmart’s announcement of its third-quarter fiscal 2025 results on Tuesday, the company’s shares have risen to an all-time high of $87.88 — the highest stock price since Walmart began trading on the New York Stock Exchange in August 1972.
Walmart also reported an increase in customer visits across Walmart’s stores and websites, especially among those ordering in-store pickup or at-home delivery. The retail giant noted a rise in the number of customers willing to spend more to receive their orders faster as well.
According to Walmart CFO John David Rainey, “ … for the past two quarters, 30% of customer orders in the U.S. have come with an extra fee to get delivery within a shorter time frame, like within one hour or within three hours.”
Although consumers are willing to pay for convenience, Walmart is aware its customers are looking for compelling deals and holding off on making some purchases, especially as they pay more for food. Rainey also cautioned that President-elect Donald Trump’s potential tariffs could force Walmart to raise prices in the future.
