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TJX Earnings and Sales Surpass Estimates in Q1, Comp Sales Rise
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The TJX Companies, Inc. (TJX - Free Report) posted first-quarter fiscal 2026 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Earnings decreased, while sales increased from the year-ago quarter. The company reaffirmed its fiscal 2026 view.
Management highlighted that all divisions — both in the United States and internationally — achieved growth in comparable sales and customer traffic, reinforcing the company's strong value proposition. TJX noted a strong start to the fiscal second quarter and remains focused on executing the core fundamentals of its off-price retail model. Management believes that its broad, compelling assortments and resilient business model will continue to attract value-focused shoppers amid ongoing macroeconomic challenges.
TJX's Quarterly Metrics: Key Insights
The TJX Companies’ earnings per share (EPS) were 92 cents per share, down from 93 cents reported in the year-ago quarter. The metric surpassed the Zacks Consensus Estimate of 90 cents per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Net sales came in at $13,111 million, an increase of 5% year over year (the same at constant currency). The top line surpassed the Zacks Consensus Estimate of $13,024 million. In the Marmaxx (United States) division, the company’s net sales came in at $8,052 million, up 4% year over year. Net sales amounted to $2,254 million, up 8% year over year, in the HomeGoods (United States) division. TJX Canada’s net sales came in at $1,144 million, up 3% from the figure reported in the year-ago period. TJX International’s (Europe & Australia) net sales were $1,661 million, up 8% year over year.
The company witnessed a 3% jump in consolidated comparable store sales, at the high end of the company’s projection. This growth was primarily driven by higher customer transactions. Comparable store sales rose 2% at Marmaxx (United States), 4% at HomeGoods (United States), 5% at TJX Canada and 5% at TJX International (Europe & Australia).
The TJX Companies, Inc. Price, Consensus and EPS Surprise
The TJX Companies’ pretax profit margin was 10.3%, down 0.8 percentage points from the year-ago quarter’s level.
The gross profit margin came in at 29.5%, down 0.5 percentage points year over year, mainly due to unfavorable mark-to-market adjustments on inventory hedges.
The company’s selling, general and administrative (SG&A) costs, as a percent of sales, were 19.4%, a 0.2 percentage point increase, thanks to escalated store wage and payroll costs, among other reasons.
TJX’s Financial Health Snapshot
During first-quarter fiscal 2026, the Zacks Rank #3 (Hold) company added 36 stores, ending the quarter with 5,121 stores.
The TJX Companies ended the quarter with cash and cash equivalents of $4,255 million, long-term debt of $2,867 million and shareholders’ equity of $8,503 million. It generated an operating cash flow of $394 million during the fiscal first quarter.
During the quarter, the company returned $1 billion to its shareholders. The TJX Companies repurchased $613 million worth of stock, retiring 5.1 million shares. It paid out $420 million in shareholder dividends in the same time frame. In February 2025, management approved a new stock repurchase program, authorizing up to an additional $2.5 billion in share buybacks. As of May 3, 2025, TJX had approximately $2.9 billion remaining under this and previous stock repurchase authorizations.
Consolidated inventories (on a per-store basis) as of May 3, 2025, increased 7% year over year on a reported and constant currency basis. The TJX Companies is capitalizing on strong merchandise availability in the marketplace and is well-positioned to deliver fresh assortments to its stores and online platforms throughout spring and summer 2025.
Image Source: Zacks Investment Research
What to Expect From TJX Moving Forward?
For fiscal 2026, The TJX Companies still expects consolidated comparable store sales growth of 2% to 3%. The full-year pretax profit margin is projected to range between 11.3% and 11.4%, reflecting a 0.1 to 0.2 percentage point decline compared to 11.5% in the prior year. In addition, fiscal 2026 EPS are forecasted to be between $4.34 and $4.43, marking a 2% to 4% increase from the previous year’s $4.26 EPS. Foreign exchange headwinds are expected to have a negative impact of approximately 0.2 percentage points on the pretax profit margin and a 3% drag on EPS growth in fiscal 2026. The guidance assumes the company will be able to offset the ongoing and significant incremental cost pressures resulting from tariffs.
For the second quarter of fiscal 2026, management expects consolidated comparable store sales to grow by 2% to 3%. The company projects a pretax profit margin between 10.4% and 10.5%, reflecting a decline of 0.4 to 0.5 percentage points from 10.9% in the prior-year quarter. The quarterly EPS is expected to range from 97 cents to $1.00, representing a year-over-year increase of 1% to 4% compared to 96 cents in the year-ago period. This guidance includes a negative impact from additional tariff costs related to merchandise commitments made prior to the new tariffs announced in March and April 2025.
The TJX Companies’ second quarter and fiscal 2026 guidance assumes that existing U.S. tariffs on imports from China and other countries, as of May 21, 2025, will remain unchanged through the end of the fiscal year.
Shares of the company have gained 11.1% in the past three months compared with the industry’s growth of 2.5%.
Canada Goose is a global outerwear brand. Canada Goose is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Canada Goose’s current fiscal-year sales and earnings indicates declines of 4.9% and 1.4%, respectively, from the previous year’s figures. GOOS has a trailing four-quarter average earnings surprise of 71.3%.
Nordstrom is a leading fashion specialty retailer in the United States. It currently carries a Zacks Rank #2. JWN has a trailing four-quarter negative earnings surprise of 26.1%, on average.
The Zacks Consensus Estimate for Nordstrom’s current financial-year sales and earnings indicates growth of 2.2% and 1.8%, respectively, from the year-ago numbers.
Stitch Fix is a leading online personal styling service with more than 2.4 million active clients. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Stitch Fix’s current financial-year earnings implies growth of 47% from the year-ago period’s actual. SFIX has a trailing four-quarter earnings surprise of 48.9%, on average.
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TJX Earnings and Sales Surpass Estimates in Q1, Comp Sales Rise
The TJX Companies, Inc. (TJX - Free Report) posted first-quarter fiscal 2026 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Earnings decreased, while sales increased from the year-ago quarter. The company reaffirmed its fiscal 2026 view.
Management highlighted that all divisions — both in the United States and internationally — achieved growth in comparable sales and customer traffic, reinforcing the company's strong value proposition. TJX noted a strong start to the fiscal second quarter and remains focused on executing the core fundamentals of its off-price retail model. Management believes that its broad, compelling assortments and resilient business model will continue to attract value-focused shoppers amid ongoing macroeconomic challenges.
TJX's Quarterly Metrics: Key Insights
The TJX Companies’ earnings per share (EPS) were 92 cents per share, down from 93 cents reported in the year-ago quarter. The metric surpassed the Zacks Consensus Estimate of 90 cents per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Net sales came in at $13,111 million, an increase of 5% year over year (the same at constant currency). The top line surpassed the Zacks Consensus Estimate of $13,024 million. In the Marmaxx (United States) division, the company’s net sales came in at $8,052 million, up 4% year over year. Net sales amounted to $2,254 million, up 8% year over year, in the HomeGoods (United States) division. TJX Canada’s net sales came in at $1,144 million, up 3% from the figure reported in the year-ago period. TJX International’s (Europe & Australia) net sales were $1,661 million, up 8% year over year.
The company witnessed a 3% jump in consolidated comparable store sales, at the high end of the company’s projection. This growth was primarily driven by higher customer transactions. Comparable store sales rose 2% at Marmaxx (United States), 4% at HomeGoods (United States), 5% at TJX Canada and 5% at TJX International (Europe & Australia).
The TJX Companies, Inc. Price, Consensus and EPS Surprise
The TJX Companies, Inc. price-consensus-eps-surprise-chart | The TJX Companies, Inc. Quote
The TJX Companies’ pretax profit margin was 10.3%, down 0.8 percentage points from the year-ago quarter’s level.
The gross profit margin came in at 29.5%, down 0.5 percentage points year over year, mainly due to unfavorable mark-to-market adjustments on inventory hedges.
The company’s selling, general and administrative (SG&A) costs, as a percent of sales, were 19.4%, a 0.2 percentage point increase, thanks to escalated store wage and payroll costs, among other reasons.
TJX’s Financial Health Snapshot
During first-quarter fiscal 2026, the Zacks Rank #3 (Hold) company added 36 stores, ending the quarter with 5,121 stores.
The TJX Companies ended the quarter with cash and cash equivalents of $4,255 million, long-term debt of $2,867 million and shareholders’ equity of $8,503 million. It generated an operating cash flow of $394 million during the fiscal first quarter.
During the quarter, the company returned $1 billion to its shareholders. The TJX Companies repurchased $613 million worth of stock, retiring 5.1 million shares. It paid out $420 million in shareholder dividends in the same time frame. In February 2025, management approved a new stock repurchase program, authorizing up to an additional $2.5 billion in share buybacks. As of May 3, 2025, TJX had approximately $2.9 billion remaining under this and previous stock repurchase authorizations.
Consolidated inventories (on a per-store basis) as of May 3, 2025, increased 7% year over year on a reported and constant currency basis. The TJX Companies is capitalizing on strong merchandise availability in the marketplace and is well-positioned to deliver fresh assortments to its stores and online platforms throughout spring and summer 2025.
Image Source: Zacks Investment Research
What to Expect From TJX Moving Forward?
For fiscal 2026, The TJX Companies still expects consolidated comparable store sales growth of 2% to 3%. The full-year pretax profit margin is projected to range between 11.3% and 11.4%, reflecting a 0.1 to 0.2 percentage point decline compared to 11.5% in the prior year. In addition, fiscal 2026 EPS are forecasted to be between $4.34 and $4.43, marking a 2% to 4% increase from the previous year’s $4.26 EPS. Foreign exchange headwinds are expected to have a negative impact of approximately 0.2 percentage points on the pretax profit margin and a 3% drag on EPS growth in fiscal 2026. The guidance assumes the company will be able to offset the ongoing and significant incremental cost pressures resulting from tariffs.
For the second quarter of fiscal 2026, management expects consolidated comparable store sales to grow by 2% to 3%. The company projects a pretax profit margin between 10.4% and 10.5%, reflecting a decline of 0.4 to 0.5 percentage points from 10.9% in the prior-year quarter. The quarterly EPS is expected to range from 97 cents to $1.00, representing a year-over-year increase of 1% to 4% compared to 96 cents in the year-ago period. This guidance includes a negative impact from additional tariff costs related to merchandise commitments made prior to the new tariffs announced in March and April 2025.
The TJX Companies’ second quarter and fiscal 2026 guidance assumes that existing U.S. tariffs on imports from China and other countries, as of May 21, 2025, will remain unchanged through the end of the fiscal year.
Shares of the company have gained 11.1% in the past three months compared with the industry’s growth of 2.5%.
Stocks Looking Red Hot
Some better-ranked stocks are Canada Goose (GOOS - Free Report) , Nordstrom (JWN - Free Report) and Stitch Fix (SFIX - Free Report) .
Canada Goose is a global outerwear brand. Canada Goose is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Canada Goose’s current fiscal-year sales and earnings indicates declines of 4.9% and 1.4%, respectively, from the previous year’s figures. GOOS has a trailing four-quarter average earnings surprise of 71.3%.
Nordstrom is a leading fashion specialty retailer in the United States. It currently carries a Zacks Rank #2. JWN has a trailing four-quarter negative earnings surprise of 26.1%, on average.
The Zacks Consensus Estimate for Nordstrom’s current financial-year sales and earnings indicates growth of 2.2% and 1.8%, respectively, from the year-ago numbers.
Stitch Fix is a leading online personal styling service with more than 2.4 million active clients. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Stitch Fix’s current financial-year earnings implies growth of 47% from the year-ago period’s actual. SFIX has a trailing four-quarter earnings surprise of 48.9%, on average.