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TJX Companies Extends Sales Growth Momentum: More Upside Ahead?
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Key Takeaways
TJX raises fiscal 2027 sales and comparable sales growth guidance after strong results.
The TJX Companies sees customer transaction growth across all retail divisions.
TJX delivers 6% comparable sales growth and around 9% revenue growth in the first quarter of fiscal 2027.
The TJX Companies, Inc. (TJX - Free Report) delivered strong results in the first quarter of fiscal 2027, with sales, profitability and earnings per share coming in above the company's plan. The company delivered net sales of $14.3 billion, up nearly 9% year over year, with overall comp sales increasing 6% during the period. TJX Companies attributed its strong first-quarter performance to disciplined execution across the organization and effective collaboration among its global teams.
The company noted that all divisions delivered increases in customer transactions, while management highlighted continued customer attraction across its retail banners. All company divisions contributed to this growth, demonstrating broad-based strength across the business. In addition to sales growth, each division generated increases in customer transactions, indicating healthy customer engagement and demand. The combination of positive comparable sales and higher transaction volumes reflects solid execution across the company's operating segments.
Marmaxx delivered a strong 6% comparable sales increase, while TJX Canada reported a 7% comp sales gain. HomeGoods outperformed with a 9% comparable sales increase during the quarter. Additionally, the continued availability of quality branded merchandise is also positioning the company to capitalize on attractive opportunities in the marketplace.
Looking ahead, the company raised its guidance for fiscal 2027 and expects overall comparable sales growth of 3% to 4% compared with the prior guided range of 2% to 3%. The company also raised guidance for consolidated sales growth to the range of 5%-6% from the previous guided range of 4% to 5%. Overall, broad-based sales growth, higher customer transactions and strong merchandise availability provide support for TJX Companies’ growth initiatives and expansion opportunities.
How Do Burlington Stores & Ross Stores Fare?
Burlington Stores, Inc. (BURL - Free Report) reported a 14% year-over-year increase in first-quarter fiscal 2026 sales to $2,852 million, supported by a 6% increase in comparable store sales. Looking ahead, Burlington Stores expects fiscal 2026 total sales growth to be in the range of 9% to 11%, driven by anticipated comparable store sales growth of 2% to 4%.
Ross Stores, Inc. (ROST - Free Report) delivered total sales growth of 21% year over year to $6 billion in the first quarter of fiscal 2026, supported by a robust 17% year-over-year increase in comparable store sales compared with flat performance in the prior year. Reflecting the strong quarter, Ross Stores has raised its fiscal 2026 same-store sales growth outlook to the range of 6%-7% from the previous guided range of 3%-4%.
The Zacks Rundown for TJX
The company’s shares have gained 1.8% in the past six months compared with the industry’s 8.5% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 28.7, lower than the industry’s average of 31.13.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TJX’s current and next fiscal year earnings per share implies a year-over-year rise of 8.9% and 9.8%, respectively.
View the Zacks #1 Rank List
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TJX Companies Extends Sales Growth Momentum: More Upside Ahead?
Key Takeaways
The TJX Companies, Inc. (TJX - Free Report) delivered strong results in the first quarter of fiscal 2027, with sales, profitability and earnings per share coming in above the company's plan. The company delivered net sales of $14.3 billion, up nearly 9% year over year, with overall comp sales increasing 6% during the period. TJX Companies attributed its strong first-quarter performance to disciplined execution across the organization and effective collaboration among its global teams.
The company noted that all divisions delivered increases in customer transactions, while management highlighted continued customer attraction across its retail banners. All company divisions contributed to this growth, demonstrating broad-based strength across the business. In addition to sales growth, each division generated increases in customer transactions, indicating healthy customer engagement and demand. The combination of positive comparable sales and higher transaction volumes reflects solid execution across the company's operating segments.
Marmaxx delivered a strong 6% comparable sales increase, while TJX Canada reported a 7% comp sales gain. HomeGoods outperformed with a 9% comparable sales increase during the quarter. Additionally, the continued availability of quality branded merchandise is also positioning the company to capitalize on attractive opportunities in the marketplace.
Looking ahead, the company raised its guidance for fiscal 2027 and expects overall comparable sales growth of 3% to 4% compared with the prior guided range of 2% to 3%. The company also raised guidance for consolidated sales growth to the range of 5%-6% from the previous guided range of 4% to 5%. Overall, broad-based sales growth, higher customer transactions and strong merchandise availability provide support for TJX Companies’ growth initiatives and expansion opportunities.
How Do Burlington Stores & Ross Stores Fare?
Burlington Stores, Inc. (BURL - Free Report) reported a 14% year-over-year increase in first-quarter fiscal 2026 sales to $2,852 million, supported by a 6% increase in comparable store sales. Looking ahead, Burlington Stores expects fiscal 2026 total sales growth to be in the range of 9% to 11%, driven by anticipated comparable store sales growth of 2% to 4%.
Ross Stores, Inc. (ROST - Free Report) delivered total sales growth of 21% year over year to $6 billion in the first quarter of fiscal 2026, supported by a robust 17% year-over-year increase in comparable store sales compared with flat performance in the prior year. Reflecting the strong quarter, Ross Stores has raised its fiscal 2026 same-store sales growth outlook to the range of 6%-7% from the previous guided range of 3%-4%.
The Zacks Rundown for TJX
The company’s shares have gained 1.8% in the past six months compared with the industry’s 8.5% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 28.7, lower than the industry’s average of 31.13.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TJX’s current and next fiscal year earnings per share implies a year-over-year rise of 8.9% and 9.8%, respectively.
Image Source: Zacks Investment Research
TJX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.