TJX Companies, Inc. (The)
TJX · NYSE
Next quarter
Expected to report Nov 18, 2026 — estimated from last year’s reporting date.
Consensus is $1.33 EPS for Oct 2026 across 7 estimates, ranging $1.32 to $1.36.
TJX Jul 2026
- 3.39%
- $1.18
- $1.22
- —
- $15.18B
Reported results
- $15.18B
- $1.52B
- $1.36
Highlights
- Adjusted earnings: Diluted EPS was $1.22, $0.04 above the $1.18 consensus and up 11% year over year; reported EPS was $1.36, including a $0.14 tariff-refund benefit.
- Sales: Net sales rose 5% to $15.18 billion, while consolidated comparable sales increased 4%, matching the year-ago comp rate and exceeding TJX’s plan.
- Profitability: Adjusted pretax margin increased 0.5 percentage points to 11.9%, driven by a 0.7-point improvement in adjusted gross margin to 31.4%, partly offset by higher store wages and payroll.
- Division mix: HomeGoods, TJX Canada and TJX International posted comparable sales increases of 7%, 6% and 7%, respectively, while Marmaxx delivered only 1% growth and fell short of expectations.
- Tariff refunds: TJX received $331 million of IEEPA tariff refunds and accrued $112 million of related incentive compensation, producing a $219 million pretax benefit and a $0.14 EPS benefit.
- Guidance: Full-year adjusted EPS guidance increased to $5.15-$5.20 from the prior outlook, alongside adjusted pretax margin guidance of 12.0%-12.1%; comparable sales guidance remains 3%-4%.
- Store runway: TJX plans to increase store-opening growth to 4% starting in FY2028 and raised its long-term store target by 500 to 7,500 locations.
- Cash returns: The company generated $2.2 billion of quarterly operating cash flow, repurchased $798 million of stock and paid $529 million in dividends, returning $1.3 billion to shareholders.
Analysis
TJX delivered a clear beat in the second quarter of FY2027. Adjusted diluted EPS of $1.22 exceeded the $1.18 consensus by 3.39% and rose 11% from $1.10 a year ago and from $1.19 in the supplied prior-quarter comparison. Revenue increased 5% year over year to $15.18 billion, versus $14.40 billion a year ago, and was above the $14.32 billion prior-quarter figure. Net income reached $1.52 billion, compared with $1.24 billion last year and $1.33 billion in the prior quarter.
The print was defined by stronger-than-planned sales outside the core Marmaxx business, meaningful underlying margin expansion and a one-time tariff benefit. Consolidated comps rose 4%, led by HomeGoods, Canada and International, but Marmaxx comps were just 1% and below expectations. Excluding the $219 million net IEEPA refund benefit, adjusted pretax margin still expanded 0.5 points to 11.9%, as merchandise margin improved despite higher wages and payroll. Management raised full-year adjusted EPS guidance to $5.15-$5.20 and pointed to a strong start to the third quarter, while maintaining 3%-4% full-year comp guidance. The planned acceleration to 4% store growth and a 7,500-store long-term target add a longer-term expansion angle to an otherwise operationally focused quarter.
Profitability and earnings
TJX’s reported pretax margin rose 1.9 percentage points to 13.3%, but the more useful underlying measure was adjusted pretax margin, which increased 0.5 points year over year to 11.9%. Adjusted gross margin improved 0.7 points to 31.4%, driven by higher merchandise margin. Adjusted SG&A rose 0.2 points to 19.7%, reflecting incremental store wage and payroll costs, so merchandise economics more than offset labor pressure. Reported net income was $1.52 billion and reported EPS was $1.36, up 24% and 11% respectively from the year-ago GAAP figures of $1.24 billion and $1.10; the adjusted comparison excludes the tariff-related benefit.
Comparable sales by division
- Marmaxx: Sales increased 3% to $9.11 billion, but comparable sales rose only 1% versus 3% last year and were below management’s expectations. Management said the division improved at the start of the third quarter.
- HomeGoods: Sales grew 10% to $2.51 billion and comparable sales increased 7%, accelerating from 5% a year ago. Segment profit was $441 million versus $228 million, although the current quarter included a significant tariff-refund benefit.
- International: TJX International sales rose 11% to $2.09 billion, or 10% in constant currency, with comparable sales up 7%. TJX Canada sales increased 6% to $1.47 billion, or 8% in constant currency, with comps up 6%.
- Consolidated: Sales were up 5% to $15.18 billion, or 6% excluding currency translation, while consolidated comps rose 4% and first-half comps reached 5%.
Tariff refund impact
- Quarterly benefit: TJX received $331 million of IEEPA tariff refunds during the quarter and accrued $112 million of additional incentive compensation and discretionary bonuses. The net pretax benefit was $219 million, equivalent to $0.14 of diluted EPS.
- Underlying results: The refund lifted reported gross margin by 2.0 points and pretax margin by 1.4 points. Excluding it, gross margin was 31.4% and pretax margin was 11.9%, both still above last year.
- Forward uncertainty: TJX expects additional refunds in the third quarter and an estimated $0.06 net EPS benefit, but said the amount, timing and ultimate recovery remain subject to legal, regulatory and administrative developments.
Raised full-year outlook
Management left full-year comparable-sales guidance unchanged at 3%-4% but raised full-year pretax margin guidance to 12.3%-12.4%, or 12.0%-12.1% excluding the expected 0.3-point tariff benefit. Full-year diluted EPS guidance increased to $5.31-$5.36, with adjusted EPS now expected at $5.15-$5.20 including a $0.16 tariff-related benefit. For the third quarter, TJX expects comps up 2%-3%, adjusted pretax margin of 12.3%-12.4% and adjusted EPS of $1.30-$1.32, after a $0.06 tariff benefit.
Store growth and capital
- Expansion: TJX ended the quarter with 5,285 stores, up 23 from the prior quarter, and increased square footage 0.4%. It plans to accelerate store-opening growth to 4% beginning in FY2028 and raised its long-term target to 7,500 stores from 7,000.
- Inventory: Total inventory was $7.9 billion versus $7.4 billion a year ago. Inventory per store increased 2% on a reported basis and 3% in constant currency, positioning the company to flow fresh merchandise into the fall and holiday seasons.
- Shareholder returns: Operating cash flow was $2.2 billion in the quarter, cash ended at $6.0 billion, and TJX returned $1.3 billion through $798 million of repurchases and $529 million of dividends. It expects to repurchase approximately $2.75-$3.0 billion of stock in FY2027.
