TJX raises full year guidance as Q1 beats expectations

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

TJX CEO Eric Herman said the company’s growth was driven by an increase in “customer transactions,” with comparable store sales rising 6% on a consolidated basis.

HomeGoods led the way with a 9% comparable sales gain, followed by TJX Canada at 7% and Marmaxx, which includes T.J. Maxx and Marshalls, at 6%. International operations posted 4% comparable growth.

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

Herman noted that favourable buying conditions had benefited the business, with strong availability of branded merchandise in the wholesale market allowing the company to source premium products at lower costs and support merchandise margins.

Gross profit margin for Q1 was 31.3%, up 1.8 percentage points versus last year’s 29.5%, driven by an increase in merchandise margin, a benefit from favourable inventory and fuel hedges, and expense leverage on sales.

Herrman stated: “I am extremely pleased with our first quarter performance. Sales, pretax profit margin, and earnings per share were all well above our plan. Throughout the quarter, our teams around the globe successfully executed on our off-price fundamentals to deliver on our value mission and offer an exciting treasure-hunt shopping experience to customers every day. All of our divisions delivered strong comparable sales growth and increases in customer transactions.”

Looking ahead

For the second quarter of Fiscal 2027, TJX is planning consolidated comparable 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 full year Fiscal 2027, the company is raising its consolidated comparable sales outlook from 3% to 4%. The retailer is expecting its pretax profit margin outlook to be in the range of 11.9% to 12.0% and is raising its diluted earnings per share outlook to be in the range of $5.08 to $5.15.

TJX’s full-year Fiscal 2027 outlook now assumes that a higher cost of fuel will be in place for the remainder of the year and that it will be unfavorable to pretax profit margin and diluted earnings per share versus its previous outlook.

“The second quarter is off to a good start, and we are excited about the initiatives we have planned to keep driving sales and attract consumers to our retail banners,” continued Herman.

“Going forward, we are convinced that the flexibility and resiliency of our off-price business model will continue to be a tremendous advantage. We are energised by the opportunities we see to drive sales, continue expanding our global footprint, and capture additional market share around the world for many years to come.”

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

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