TJX Shares Hit 52-Week Low as Marmaxx Sales Slowdown Weighs on Stock

Shares of The TJX Companies (NYSE: TJX) have fallen to a new 52-week low, closing at $131.31 on September 2. The decline is driven by investor concerns over a sharp slowdown in sales at its core Marmaxx division, overshadowing the retailer's otherwise strong long-term financial performance.

Marmaxx Slowdown Drives Sell-Off

The primary catalyst for the stock's recent weakness is a significant deceleration in comparable store sales at the Marmaxx unit, which includes the T.J. Maxx and Marshalls brands. The division's comparable sales growth slowed to just 1% in the most recent period, a steep drop from 6% previously.

This slowdown is a critical concern for investors, as the Marmaxx segment is the company's primary profit engine. According to an analysis by Jefferies, the division accounts for over 60% of total sales and nearly 70% of the company's earnings before interest and taxes (EBIT).

Technical Picture Remains Bearish

From a technical standpoint, the stock's momentum remains negative despite reaching oversold conditions. The daily Relative Strength Index (RSI), a popular momentum indicator, has fallen to 19.3, a level below 30 that typically signals a stock may be due for a rebound.

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However, other indicators suggest the downtrend is powerful and could persist. The Average Directional Index (ADX), which measures trend strength, registered a high reading of 66.6, indicating that the selling pressure is firmly in place. The stock is also trading below its key short-term moving averages, reinforcing the bearish outlook.

Valuation and Fundamentals Offer Mixed Signals

While near-term challenges persist, TJX's long-term financial health remains intact. The company has demonstrated robust growth, with revenue increasing from $48.55 billion in fiscal 2022 to $60.37 billion in fiscal 2026, while its net margin improved from 6.8% to 9.1% over the same period.

Despite the share price decline of over 14% year-to-date, the stock's valuation is not yet in distressed territory. Shares trade at a forward price-to-earnings (P/E) multiple of 24.8x, a premium that investors may be hesitant to pay until the operational issues at Marmaxx show signs of stabilization.