TJX Companies raised its full-year outlook after first-quarter net income rose 28.5% year on year, helped by stronger sales, higher margins and customer traffic across all divisions.
The off-price retailer said on 20 May that net income for the quarter ended 2 May 2026 increased to $1.33bn from $1.03bn a year earlier, while diluted earnings per share rose 29% to $1.19 from $0.92.
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Net sales grew 9% to $14.32bn from $13.11bn, and comparable sales increased 6%, up from 3% in the prior-year period.
Pretax profit margin widened to 12.0% from 10.3%, an increase of 1.7 percentage points, while gross margin improved to 31.3% from 29.5%. As a share of sales, SG&A [selling, general, and administrative expenses] edged up to 19.5% from 19.4%.
CEO Ernie Herrman said the quarter came in ahead of plan: “Sales, pretax profit margin, and earnings per share were all well above our plan.”
“All of our divisions delivered strong comparable sales growth and increases in customer transactions.”
By division, Marmaxx comparable sales rose 6%, HomeGoods 9%, TJX Canada 7%, and TJX International 4%.
Net sales increased 7% at Marmaxx to $8.65bn, 11% at HomeGoods to $2.50bn, 12% at TJX Canada to $1.28bn and 13% at TJX International to $1.88bn.
TJX said it now expects full-year comparable sales growth of 3% to 4%, up from its previous outlook, with a pretax profit margin of 11.9% to 12.0% and diluted EPS of $5.08 to $5.15.
It also raised its planned share buybacks to $2.75bn-$3.0bn for fiscal 2027.
For the second quarter, the company forecast comparable sales growth of 2% to 3% and diluted EPS of $1.15 to $1.17.
Herrman said the company was seeing “outstanding” availability of branded merchandise and remained “well-positioned to take advantage of the plentiful buying opportunities” in the market.
TJX ended the quarter with $5.58bn in cash and inventory of $7.67bn, up 7.68% from $7.12bn a year earlier.
It returned $1.10bn to shareholders in the quarter, comprising $604m in share repurchases and $471m in dividends.
