TJX reports strong Q1 results exceeding expectations

Off-price apparel and home fashions retailer the TJX Companies (TJX), which is based in the US, has announced financial results for the first quarter of fiscal year 2027 ended May 2, 2026, delivering growth that exceeded internal plans. The corporate group reported a 9 percent increase in net sales to 14.32 billion dollars in the first quarter of fiscal year 2026.

Consolidated like-for-like (LFL) sales, increased 6 percent during the period, driven by growth across all divisions and higher customer transactions. On a constant currency basis, net sales growth for the quarter was 8 percent, with foreign currency exchange rates providing a one percentage point positive impact.

Net income reached 1.33 billion dollars, up from 1.04 billion dollars in the prior year period. Diluted earnings per share (EPS) grew 29 percent to 1.19 dollars, compared to 0.92 dollars in the first quarter of fiscal 2026.

Division performance and sales metrics

The Marmaxx division, which includes TJ Maxx, Marshalls, and Sierra stores alongside their e-commerce platforms in the US, recorded net sales of 8.65 billion dollars, representing a 7 percent reported growth rate. LFL sales for Marmaxx grew by 6 percent during the first quarter.

The US HomeGoods division, which operates HomeGoods and Homesense locations, achieved net sales of 2.51 billion dollars, an 11 percent increase on a reported basis, with LFL sales rising 9 percent.

International operations also expanded during the quarter. TJX Canada, encompassing Winners, HomeSense, and Marshalls stores in Canada, recorded net sales of 1.29 billion dollars, up 12 percent on a reported basis and 9 percent on a constant currency basis, with LFL sales up 7 percent. TJX International, which covers TK Maxx and Homesense stores plus European e-commerce sites across Europe and Australia, reported net sales of 1.88 billion dollars, an increase of 13 percent on a reported basis and 7 percent on a constant currency basis, accompanied by a 4 percent increase in LFL sales.

Capital allocation and updated financial outlook

TJX generated 1.12 billion dollars in operating cash flow and concluded the first quarter with 5.58 billion dollars in cash and cash equivalents. The retailer returned 1.08 billion dollars to shareholders through the repurchase of 3.80 million shares of common stock for 604 million dollars and the distribution of 471 million dollars in shareholder dividends.

The corporate board previously approved a new stock repurchase program authorizing up to an additional 3.00 billion dollars of stock buybacks, leaving approximately 3.50 billion dollars available under all active programs as of May 2, 2026.

TJX ups outlook

Following the first quarter performance, chief executive officer and president Ernie Herrman stated that the spring/summer 2026 season was off to a positive start, prompting an upward revision for full year projections. Herrman remarked, “Availability of quality, branded merchandise is outstanding, and we are well-positioned to take advantage of the plentiful buying opportunities we are seeing in the marketplace”.

For the second quarter of fiscal 2027, TJX plans consolidated LFL sales growth of 2 percent to 3 percent, a pretax profit margin between 11.4 percent and 11.5 percent, and diluted EPS in the range of 1.15 dollars to 1.17 dollars.

For the full year fiscal 2027, the group raised its consolidated LFL sales growth outlook to a range of 3 percent to 4 percent. The expected full year pretax profit margin has been increased to a range of 11.9 percent to 12 percent, and full year diluted EPS expectations have been upgraded to between 5.08 dollars and 5.15 dollars.