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Steady Comps Momentum: Will TJX Sustain its Winning Run?

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Key Takeaways

  • TJX delivered 3% comparable sales growth in Q1, driven entirely by higher customer traffic.
  • All four segments, led by HomeGoods and international units, contributed to the sales gain.
  • Management guided for 2-3% comparable sales growth in the second quarter of fiscal 2026.

The TJX Companies, Inc. (TJX - Free Report) delivered comparable store sales growth of 3% in the first quarter of fiscal 2026, with all four major divisions contributing to the gain. The growth was entirely driven by increased customer transactions. This strength reinforces TJX’s positioning as a reliable traffic magnet in off-price retail, especially as economic uncertainty pushes consumers toward value-driven formats.

HomeGoods led the way with comparable sales up 4%, with strength at both the HomeGoods and the HomeSense banners. Marmaxx, the largest division, posted 2% comparable sales growth, with stronger momentum noted in March and April after a weaker February that was impacted by adverse weather. TJX Canada and TJX International (which includes Europe and Australia) each reported 5% comparable sales gains, helping to offset foreign exchange pressures.

Management attributed the results to well-curated assortments and broad customer appeal, supported by close-to-need buying and sourcing flexibility. These factors have contributed to ongoing market share gains, particularly as more consumers seek value-driven retail options.

TJX is off to a strong start in the second quarter. It is guiding for 2-3% comparable sales growth for the quarter. As tariffs and macro pressures build, the focus shifts to whether this consistent traffic-driven performance can hold up, especially as promotional intensity rises across retail. Still, TJX’s ability to post positive comparable sales across categories and geographies highlights the enduring strength of its off-price model.

Tracking Comp Sales: TJX’s Peers, Costco and Burlington, Side by Side

Costco Wholesale (COST - Free Report) reported total company comparable sales growth of 5.7%, or 8% when adjusted for gas and FX, in the third quarter of fiscal 2025. U.S. comparable sales rose 6.6% (7.9% adjusted), driven primarily by 5.5% traffic growth. Costco highlighted strong member engagement and continued focus on delivering value. Sales were supported by price investments, growing Kirkland Signature penetration and sourcing flexibility in response to tariffs, helping Costco maintain its competitive positioning.

Burlington Stores (BURL - Free Report) reported flat comparable sales in the first quarter of fiscal 2025. Comparable sales declined in February but improved in March and April. Burlington maintained full-year comp guidance of flat to up 2%. Management cited tax refund delays, weather impacts and external uncertainty. Burlington continues to focus on merchandising flexibility and sourcing shifts to navigate tariffs and stabilize sales performance through the year.

TJX’s Price Performance, Valuation and Estimates

Shares of The TJX Companies have lost 1.7% in the past month compared with the industry’s decline of 1.8%.

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From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 26.6X, down from the industry’s average of 32.13X.

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Image Source: Zacks Investment Research

The Zacks Consensus Estimate for The TJX Companies’ current financial-year sales and earnings per share implies year-over-year growth of 4.4% and 4.7%, respectively. 

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Image Source: Zacks Investment Research

TJX stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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