TJX raises full-year guidance as Q1 beats expectations

TJX reported Q1 net sales of $14.3bn, while net income was $1.3bn and diluted earnings per share were $1.19, up from $0.92 in Q1 2026.

TJX CEO Eric Herman attributed the company’s growth to increased “consumer activity,” with comparable store sales up 6% on a combined basis.

HomeGoods led the way with a 9% like-for-like sales gain, followed by TJX Canada at 7% and Marmaxx, which includes TJ Maxx and Marshalls, at 6%. International operations grew by 4% in comparison.

TJX divisions also experienced an increase in net sales in Q1. Marmaxx jumped 7% to $8,650, Home Goods rose 11% to $2,506, and TJX Canada and TJX International saw the biggest jumps at 12% ($1,285) and 13% ($1,882).

Herman noted that favorable buying conditions have benefited the business, with strong availability of name-brand merchandise in the wholesale market allowing the company to source premium products at lower costs and support sales margins.

Gross profit margin for Q1 was 31.3%, up 1.8 percentage points compared to 29.5% last year, due to an increase in the ratio of goods sold, gains from favorable inventory and fuel hedges, and selling expenses.

Herrman said: “I am very pleased with our first-quarter performance. Sales, pre-tax profit margin, and earnings per share were all above our plan. Throughout the quarter, our teams around the world successfully leveraged our value proposition to deliver on our value proposition and provide an exciting wealth buying experience for customers every day. All sales segments are growing on the strength of the sales we are delivering.”

Looking ahead

For the second quarter of Fiscal 2027, TJX projects comparable consolidated sales to be up 2% to 3%, pretax profit margin to be in the range of 11.4% to 11.5%, and diluted earnings per share to be in the range of $1.15 to $1.17.

For the full year of Fiscal 2027, the company is raising its consolidated comparable sales outlook from 3% to 4%. The retailer expects its pre-tax profit margin to be 11.9% to 12.0% and is raising its diluted earnings per share to $5.08 to $5.15.

TJX’s full-year outlook for Fiscal 2027 now assumes that higher fuel costs will prevail for the remainder of the year and that it will not be favorable to achieve pre-tax profit and diluted earnings per share compared to its previous outlook.

“The second quarter has started well, and we are happy with the plans we have planned to continue selling and attracting buyers to our retail banners,” continued Herman.

“Going forward, we are confident that the flexibility and robustness of our low-cost business model will continue to be of great benefit. We are encouraged by the opportunities we see to improve sales, continue to expand our global footprint, and capture additional market share worldwide for many years to come.”

“TJX raises full-year guidance as Q1 beats expectations” was originally created and published by Just Style, a brand owned by GlobalData.

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