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TJX posted Q1 EPS of $1.19 and sales of $14.3B, with both metrics topping estimates.
The TJX Companies saw 6% comparable sales growth, led by HomeGoods at 9%.
TJX raised fiscal 2027 EPS outlook to $5.08-$5.15 and boosted sales growth guidance.
The TJX Companies, Inc. (TJX - Free Report) posted first-quarter fiscal 2027 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Both metrics also increased from the year-ago quarter. The company raised its fiscal 2027 guidance.
TJX's Quarterly Metrics: Key Insights
The TJX Companies’ fiscal first-quarter earnings per share (EPS) were $1.19, up 29% from the year-ago quarter. The metric also beat the Zacks Consensus Estimate of $1.01 per share.
The TJX Companies, Inc. Price, Consensus and EPS Surprise
Net sales came in at $14,323 million, registering an increase of 9% year over year and surpassing the Zacks Consensus Estimate of $13,998 million.
In the Marmaxx (the United States) division, the company’s net sales were $8,650 million, up 7% year over year. Net sales amounted to $2,506 million, up 11% year over year, in the HomeGoods (the United States) division. TJX Canada’s net sales were $1,285 million, up 12% from the figure reported in the year-ago period. TJX International’s (Europe & Australia) net sales were $1,882 million, up 13% year over year.
The company witnessed a 6% jump in consolidated comparable store sales, supported by strong performance in every division. Comparable store sales rose 6% at Marmaxx (the United States), 9% at HomeGoods (the United States), 7% at TJX Canada and 4% at TJX International (Europe & Australia).
The TJX Companies’ pretax profit margin was 12%, up 1.7 percentage points from the year-ago quarter’s level. The increase is driven by expense leverage from stronger-than-planned sales, favorable fuel hedges and better-than-anticipated merchandise margins.
The gross profit margin was 31.3%, up 1.8 percentage points year over year, mainly driven by higher merchandise margins, favorable inventory and fuel hedge impacts, and expense leverage from stronger sales performance.
The company’s selling, general and administrative costs, as a percent of sales, were 19.5%, a 0.1 percentage point increase.
TJX’s Financial Health Snapshot
During first-quarter fiscal 2027, this Zacks Rank #3 (Hold) company increased its total store count by 48, reaching 5,262.
The TJX Companies ended the quarter with cash and cash equivalents of $5,580 million, long-term debt of $1,871 million and shareholders’ equity of $10,403 million. It generated an operating cash flow of $1,119 million in the first quarter of fiscal 2027.
In the fiscal first quarter, the company returned $1.1 billion to shareholders, including $604 million used to repurchase 3.8 million shares and $471 million paid in shareholder dividends. The company also increased its fiscal 2027 share repurchase plan to be between $2.75 billion and $3 billion.
What to Expect From TJX Moving Forward?
For fiscal 2027, The TJX Companies now expects consolidated comparable store sales growth of 3% to 4%, up from the previously estimated 2% to 3% rise. The company also raised its pretax profit margin outlook to 11.9% to 12% compared with the prior range of 11.7% to 11.8%, and now anticipates earnings per share of $5.08 to $5.15, above the earlier forecast of $4.93 to $5.02.
For the second quarter of fiscal 2027, management expects consolidated comparable store sales to grow 2% to 3%. The company projects a pretax profit margin between 11.4% and 11.5%. The quarterly EPS is expected in the range of $1.15 to $1.17.
Shares of the company have fallen 4.8% in the past three months against the industry’s growth of 2.3%.
The Zacks Consensus Estimate for Burlington Stores’ current fiscal-year sales and earnings calls for growth of 9.7% and 15.5%, respectively, from the year-ago reported numbers. BURL delivered a trailing four-quarter earnings surprise of 13.8%, on average.
Ross Stores, Inc. (ROST - Free Report) , operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brands in the United States. It carries a Zacks Rank #2 at present. ROST delivered a trailing four-quarter earnings surprise of 6.2%, on average.
The Zacks Consensus Estimate for Ross Stores’ current fiscal-year sales and earnings implies an increase of 6.5% and 11.4%, respectively, from the prior-year levels.
Williams-Sonoma, Inc. (WSM - Free Report) operates as an omni-channel specialty retailer of various products for home. It carries a Zacks Rank #2 at present. WSM delivered a trailing four-quarter average earnings surprise of 6.7%.
The Zacks Consensus Estimate for Williams-Sonoma’s current fiscal-year sales and earnings implies an increase of 4.4% and 4.8%, respectively, from the prior-year levels.
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TJX Q1 Earnings and Sales Beat Estimates, Fiscal 2027 Guidance Raised
Key Takeaways
The TJX Companies, Inc. (TJX - Free Report) posted first-quarter fiscal 2027 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Both metrics also increased from the year-ago quarter. The company raised its fiscal 2027 guidance.
TJX's Quarterly Metrics: Key Insights
The TJX Companies’ fiscal first-quarter earnings per share (EPS) were $1.19, up 29% from the year-ago quarter. The metric also beat the Zacks Consensus Estimate of $1.01 per share.
The TJX Companies, Inc. Price, Consensus and EPS Surprise
The TJX Companies, Inc. price-consensus-eps-surprise-chart | The TJX Companies, Inc. Quote
Net sales came in at $14,323 million, registering an increase of 9% year over year and surpassing the Zacks Consensus Estimate of $13,998 million.
In the Marmaxx (the United States) division, the company’s net sales were $8,650 million, up 7% year over year. Net sales amounted to $2,506 million, up 11% year over year, in the HomeGoods (the United States) division. TJX Canada’s net sales were $1,285 million, up 12% from the figure reported in the year-ago period. TJX International’s (Europe & Australia) net sales were $1,882 million, up 13% year over year.
The company witnessed a 6% jump in consolidated comparable store sales, supported by strong performance in every division. Comparable store sales rose 6% at Marmaxx (the United States), 9% at HomeGoods (the United States), 7% at TJX Canada and 4% at TJX International (Europe & Australia).
The TJX Companies’ pretax profit margin was 12%, up 1.7 percentage points from the year-ago quarter’s level. The increase is driven by expense leverage from stronger-than-planned sales, favorable fuel hedges and better-than-anticipated merchandise margins.
The gross profit margin was 31.3%, up 1.8 percentage points year over year, mainly driven by higher merchandise margins, favorable inventory and fuel hedge impacts, and expense leverage from stronger sales performance.
The company’s selling, general and administrative costs, as a percent of sales, were 19.5%, a 0.1 percentage point increase.
TJX’s Financial Health Snapshot
During first-quarter fiscal 2027, this Zacks Rank #3 (Hold) company increased its total store count by 48, reaching 5,262.
The TJX Companies ended the quarter with cash and cash equivalents of $5,580 million, long-term debt of $1,871 million and shareholders’ equity of $10,403 million. It generated an operating cash flow of $1,119 million in the first quarter of fiscal 2027.
In the fiscal first quarter, the company returned $1.1 billion to shareholders, including $604 million used to repurchase 3.8 million shares and $471 million paid in shareholder dividends. The company also increased its fiscal 2027 share repurchase plan to be between $2.75 billion and $3 billion.
What to Expect From TJX Moving Forward?
For fiscal 2027, The TJX Companies now expects consolidated comparable store sales growth of 3% to 4%, up from the previously estimated 2% to 3% rise. The company also raised its pretax profit margin outlook to 11.9% to 12% compared with the prior range of 11.7% to 11.8%, and now anticipates earnings per share of $5.08 to $5.15, above the earlier forecast of $4.93 to $5.02.
For the second quarter of fiscal 2027, management expects consolidated comparable store sales to grow 2% to 3%. The company projects a pretax profit margin between 11.4% and 11.5%. The quarterly EPS is expected in the range of $1.15 to $1.17.
Shares of the company have fallen 4.8% in the past three months against the industry’s growth of 2.3%.
Image Source: Zacks Investment Research
Key Picks
Burlington Stores, Inc. (BURL - Free Report) operates as a retailer of branded merchandise in the United States and Puerto Rico. It currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Burlington Stores’ current fiscal-year sales and earnings calls for growth of 9.7% and 15.5%, respectively, from the year-ago reported numbers. BURL delivered a trailing four-quarter earnings surprise of 13.8%, on average.
Ross Stores, Inc. (ROST - Free Report) , operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brands in the United States. It carries a Zacks Rank #2 at present. ROST delivered a trailing four-quarter earnings surprise of 6.2%, on average.
The Zacks Consensus Estimate for Ross Stores’ current fiscal-year sales and earnings implies an increase of 6.5% and 11.4%, respectively, from the prior-year levels.
Williams-Sonoma, Inc. (WSM - Free Report) operates as an omni-channel specialty retailer of various products for home. It carries a Zacks Rank #2 at present. WSM delivered a trailing four-quarter average earnings surprise of 6.7%.
The Zacks Consensus Estimate for Williams-Sonoma’s current fiscal-year sales and earnings implies an increase of 4.4% and 4.8%, respectively, from the prior-year levels.