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    TJX
    Earnings call· Apr 2026(Q1 FY27)

    TJX COMPANIES INC /DE/ Q1 FY27 earnings call TJX

    May 20, 2026 Source

    Executive summary

    The TJX Companies Q1 FY27 — Strong Comp Sales Across All Divisions Drive Raised Outlook

    The TJX Companies delivered excellent Q1 FY27 results, with consolidated comparable store sales up 6% driven by both average basket and customer transactions across all divisions. This strong performance, coupled with effective marketing attracting younger demographics, led to a raised full-year sales and profitability outlook. The company is playing offense by leveraging strong merchandise availability and investing in store experience and associate training, while actively exploring global expansion opportunities.

    Highlights

    5

    • Consolidated comparable store sales increased an outstanding 6% in Q1 FY27.

    • Diluted earnings per share reached $1.19, up 29% YoY and well above plan.

    • Pretax profit margin was 12%, an increase of 170 basis points YoY and well above plan.

    • Gross margin improved by 180 basis points to 31.3%, driven by merchandise margin and fuel hedges.

    • HomeGoods delivered a remarkable 9% comparable store sales increase.

    Concerns

    3

    • Full-year guidance does not flow the entire Q1 EPS beat ($0.20) due to planning current fuel prices to remain for the rest of the year, representing a $0.07 differential.

    • SG&A was 19.5% in Q1 FY27, unfavorable by 10 basis points YoY.

    • Q2 FY27 SG&A is expected to be 19.6%, 10 basis points unfavorable, due to incremental store wage and payroll costs.

    Guidance & targets

    13
    CategoryTargetConfidence
    Q2 FY27 Overall Comp Sales
    2% to 3% increase
    high materiality
    High
    Q2 FY27 Consolidated Sales
    $15 billion to $15.1 billion
    high materiality
    High
    Q2 FY27 Pretax Profit Margin
    11.4% to 11.5%
    high materiality
    High
    Q2 FY27 Gross Margin
    30.9% to 31%
    medium materiality
    High
    Q2 FY27 SG&A
    19.6%
    medium materiality
    High
    Q2 FY27 Diluted EPS
    $1.15 to $1.17
    high materiality
    High
    Full Year FY27 Overall Comp Sales Growth
    3% to 4%
    high materiality
    High
    Full Year FY27 Consolidated Sales
    $63.2 billion to $63.7 billion
    high materiality
    High
    Full Year FY27 Pretax Profit Margin
    11.9% to 12%
    high materiality
    High
    Full Year FY27 Gross Margin
    31.2% to 31.3%
    medium materiality
    High
    Full Year FY27 SG&A
    19.5%
    medium materiality
    High
    Full Year FY27 Diluted EPS
    $5.08 to $5.15
    high materiality
    High
    Fiscal 2027 Share Buyback
    $2.75 billion to $3 billion
    high materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Marmaxx
    Comp sales grew an outstanding 6%, with segment profit margin increasing 100 basis points. Strong comp sales were seen across both apparel and home categories, and across all regions and income demographics.
    Comp sales in apparel and home categories: strongComp sales across region and income demographics: strongSierra stores and U.S. e-commerce sites comp: very strong increase
    		—6%—14.7%
    HomeGoods
    Comp sales increased a remarkable 9%, with segment profit margin increasing 270 basis points. Strong comp sales were seen across all region and income demographics.
    Comp sales across region and income demographics: strong
    		—9%—12.9%
    TJX Canada
    Comp sales were up an outstanding 7%. Segment profit margin on a constant currency basis grew 100 basis points across all three Canadian banners.
    Comp sales across all three Canadian banners: strong
    		—7%—grew 100 bps
    TJX International
    Comp sales increased a strong 4%. Segment profit margin on a constant currency basis improved by 40 basis points. The first store in Spain opened with terrific customer response.
    Sales growth in Europe: strongSales increase in Australia: strong
    		—4%—4.7%

    Operational metrics

    11
    Net interest income
    NeutralYoY
    Q1 FY27

    Neutral to pretax profit margin versus last year.

    Net interest income
    $28 million
    Q2 FY27

    Expected to be neutral to the second quarter pretax profit margin.

    Tax rate
    24.9%
    Q2 FY27

    Assumed for Q2 FY27 guidance.

    Weighted average share count
    1.12 billion
    Q2 FY27

    Approximately 1.12 billion shares assumed for Q2 FY27 guidance.

    Net interest income
    $122 million
    Full Year FY27

    Expected to be neutral to the full year pretax profit margin versus last year.

    Tax rate
    24.7%
    Full Year FY27

    Assumed for full year FY27 guidance.

    Weighted average share count
    1.12 billion
    Full Year FY27

    Approximately 1.12 billion shares assumed for full year FY27 guidance.

    Total capital returned
    $1.1 billion
    Q1 FY27

    Returned to shareholders through buyback and dividend programs.

    Number of buyers
    1,400+
    Current

    Team of buyers in the marketplace throughout the year.

    New vendors added
    Thousands
    Annually

    Typically adds thousands of new vendors each year.

    Countries of operation
    10
    Current

    Operates stores in 10 countries globally.

    Industry KPIs

    6
    MetricValueDetails
    Sg a OPEX ratio19.5%%
    Comparable sales6%%
    Store count growth1,700+stores
    Gross margin drivers31.3%%
    Tariff refund claimssubmittedstatus
    Inventory position markdown risk8%%

    Product announcements

    4
    ProductTypeDetails
    First store in Spainlaunch
    Marshalls 'Hustlers' campaignupdate
    HomeGoods 'never shop the same' campaignupdate
    Canada 'start winning' campaignupdate

    Deals & partnerships

    2
    AkzoJoint Venture

    Joint venture with Akzo for the Promoter Stores in Mexico, combining TJX merchandising expertise with local operating knowledge. Management is optimistic about the long-term potential.

    Brands for LessInvestment

    Investment in Brands for Less in the Middle East. Management remains confident in the long-term opportunity for that business, despite the current geopolitical environment.

    Risks & headwinds

    3
    Elevated fuel pricesRemainder of FY27

    Full-year guidance does not flow the entire Q1 EPS beat ($0.20) due to planning current fuel prices to remain for the rest of the year, representing a $0.07 differential.

    Mitigation: If fuel prices come down from current levels, the company would expect to see favorability to its full-year profitability plan.

    Incremental store wage and payroll costsQ2 FY27

    Expected to make Q2 FY27 SG&A 10 basis points unfavorable (19.6%).

    Geopolitical environment in the Middle EastCurrent

    Not quantified, but noted as a factor impacting the Brands for Less investment.

    Mitigation: Management remains confident in the long-term opportunity for the Brands for Less business.

    Q&A highlights

    6

    Is the shift to comp being equally transaction-driven a signal of customers shying away from higher-priced products or a change in behavior due to macro factors?

    Management stated there's no change in customer behavior, and they don't top-down drive ticket/transaction mix. They emphasize offering great value across good, better, and best brands, and transactions have remained healthy and consistent across all divisions.

    “no change in behavior. Again, we don't top-down drive that. We do it from bottom up with our merchants.”

    asked by Lorraine Maikis · answered by Ernie Herrman

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q1 Performance & Outlook Raise

    TJX reported excellent Q1 FY27 results, with consolidated comparable store sales up 6%, significantly exceeding expectations. This strong performance, driven by both higher average basket and increased customer transactions across all divisions, led management to raise its full-year sales and profitability outlook. The company noted that the entire Q1 beat was not flowed through to the full year due to current fuel price assumptions.

    02

    Merchandise Margin & Fuel Hedge Benefits

    Gross margin expanded by 180 basis points to 31.3% in Q1, primarily due to an increase in merchandise margin, benefits from favorable inventory and fuel hedges, and expense leverage on sales. Management highlighted the outstanding availability of quality branded merchandise and their ability to secure goods at extreme value, contributing to strong full-price selling trends.

    03

    Strategic Marketing & Customer Acquisition

    The company is actively investing in fresh marketing campaigns and partnerships, targeting a broad demographic including younger shoppers through digital media. These efforts are successfully attracting new Gen Z and millennial customers, contributing to increased customer transactions and loyalty, and are viewed as a key offensive tool for market share gains.

    04

    Global Expansion & Store Growth Potential

    TJX is pursuing global expansion, having recently opened its first store in Spain with a "terrific" customer response and planning additional openings. The company is also optimistic about its joint venture in Mexico and sees potential for over 1,700 additional stores in existing countries. Management indicated they are internally reviewing the long-term store count potential, hinting at a possible increase from the previously stated 7,000.

    05

    Inventory Management & Flexible Model

    Inventory on a per-store basis was up 7% in Q1, with management expressing confidence in current levels and marketplace availability. The company's flexible off-price model, supported by over 1,400 buyers and rapid inventory turns, allows for quick adjustments to chase hot categories and back off weaker ones, ensuring consistent value and fresh assortments.

    06

    Associate Investment & Culture

    TJX emphasizes continuous investment in the teaching and training of its associates, aiming to develop the next generation of leaders and maintain its deep off-price knowledge and expertise. This focus on culture and talent development is seen as a major contributor to long-term success and continuity.

    AI-generated summary of the company’s earnings call. Not investment advice.