Strong Consolidated Q1 Results
Consolidated comparable sales +6% in Q1; diluted EPS $1.19, up 29% YoY; pretax profit margin 12.0%, up 170 basis points vs prior year; gross margin 31.3%, up 180 basis points.
TJX Companies
· TJX
May 20th, 2026
Summary
- Earnings Call Date:
- 2026-05-20
- Change Since:
- -2.52%
- Next Earnings Date:
- 2026-08-19
Earnings Call Sentiment
PositiveThe call was decisively positive: the company delivered a materially stronger-than-expected quarter with double-digit EPS growth, notable margin expansion, multi-division comp strength (Marmaxx +6%, HomeGoods +9%, Canada +7%, International +4%), raised full-year top-line and EPS guidance, increased buyback authorization, and emphasized strong inventory availability and expansion opportunities. Headwinds cited were limited in scale relative to the results — modest SG&A pressure from wages, exposure to fuel-price volatility (hedge assumptions), higher inventory levels, and geopolitical/ tariff uncertainties that management is monitoring but did not characterize as damaging to the overall outlook. On balance, highlights significantly outweigh the lowlights.
Company Guidance
Management raised its outlook after a strong Q1 and provided Q2 and full‑year guidance: Q2 comps +2% to +3%; consolidated sales $15.0–15.1B (+4%–5% YoY); pretax profit margin 11.4%–11.5% (flat to +10 bps vs last year’s 11.4%); gross margin 30.9%–31.0% (+20–30 bps vs last year’s 30.7%); SG&A 19.6% (10 bps unfavorable); net interest income assumed $28M (neutral to pretax); tax rate 24.9%; weighted average shares ≈1.12B; diluted EPS $1.15–$1.17 (+5%–6% vs $1.10). Full‑year: comps +3% to +4%; consolidated sales $63.2–63.7B (+5%–6%); pretax margin 11.9%–12.0% (+20–30 bps vs adjusted 11.7%); gross margin 31.2%–31.3% (+20–30 bps vs adjusted 31.0%); SG&A 19.5% (flat); net interest income ≈$122M (neutral); tax rate 24.7%; shares ≈1.12B; diluted EPS $5.08–$5.15 (+7%–9% vs adjusted $4.73). The company also increased FY‑2027 share buyback guidance to $2.75–3.0B after returning $1.1B to shareholders in Q1.
Divisional Outperformance — Marmaxx
Marmaxx comp sales +6%; segment profit margin 14.7%, up 100 basis points; broad strength across apparel and home categories and across regions and income demographics.
Divisional Outperformance — HomeGoods
HomeGoods comp sales +9%; segment profit margin 12.9%, up 270 basis points; noted differentiated assortment and opportunity for further U.S. home market share gains.
Strong Canada and International Performance
TJX Canada comp sales +7% with segment profit margin up ~100 basis points on a constant currency basis; TJX International comp sales +4% and segment profit margin 4.7%, up 40 basis points; opened first store in Spain with strong customer response.
Merchandise Margin, Inventory and Availability
Merchandise margin was a primary driver of gross margin expansion; balance sheet inventory +8% (per-store inventory +7%) with management calling availability 'off the charts' and favorable vendor access.
Capital Return and Buyback Increase
Returned $1.1 billion to shareholders in Q1 via buybacks and dividends; increased fiscal 2027 share buyback guidance to $2.75 billion–$3.0 billion to allow opportunistic repurchases.
Raised Full-Year Guidance
Full-year consolidated sales guidance increased to $63.2B–$63.7B (up 5%–6% vs PY); full-year comp sales guidance raised to +3%–4%; full-year pretax profit margin guidance raised to 11.9%–12.0% (up 20–30 bps); FY diluted EPS raised to $5.08–$5.15 (up 7%–9% vs adjusted $4.73).
Q2 Outlook
Q2 comp sales planned +2%–3%; Q2 consolidated sales $15.0B–$15.1B (up 4%–5%); Q2 diluted EPS guidance $1.15–$1.17 (up 5%–6% YoY); Q2 gross margin expected 30.9%–31.0% (up 20–30 bps).
Operational and Strategic Execution
Company highlighted strong execution across buyers, allocation, store refresh/remodel program, digital/demographic marketing and international expansion runway (now in 10 countries and citing potential to add 1,700+ stores in existing countries).
Operator
Ladies and gentlemen, thank you for standing by. Welcome to the TJX Companies First Quarter Fiscal 2027 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded, May 20, 2026. I would like to turn the conference call over to Mr. Ernie Herman, Chief Executive Officer and President of the TJX Companies. Please go ahead, sir.
Ernie Herrman
Thanks, Ted. Before we begin, Deb has some opening comments.
Debra McConnell
Thank you, Ernie, and good morning. Today's call is being recorded and includes forward-looking statements about our results and plans. These statements are subject to risks and uncertainties that could cause the actual results to vary materially from these statements, including, among others, the factors identified in our filings with the SEC. Please review our press release for a cautionary statement regarding forward-looking statements as well as the full safe harbor statements included in the Investors section of our website, tjx.com. We have also detailed the impact of foreign exchange on our consolidated results and our international divisions in today's press release and in the Investors section of tjx.com, along with reconciliations to non-GAAP measures we discuss. Thank you. And now I'll turn it back over to Ernie.
Ernie Herrman
Good morning. Joining me and Deb on the call is John. I want to begin by thanking our global associates for their hard work. I truly appreciate their ongoing commitment to both TJX and to our customers. Now to an overview of our first quarter results. I'm extremely pleased with our excellent first quarter results. First quarter...
Subscribe to unlock transcripts
Get The Fly Pro 7 days for free