TJX Cos. Q2 earnings, sales rise; to accelerate store expansion in 2027
TJX Cos. beat second-quarter expectations amid another strong showing by its HomeGoods banner even as its namesake division faltered.
The off-price apparel and home goods giant said it is planning to accelerate its store openings to 4% starting next year. Long term, TJX believes it can now grow its overall global store base to a total of 7,500 stores for its existing retail banners in its current countries.
"We remain very confident in the long runway for growth ahead for TJX and we are excited about the opportunities we see to bring great values to even more consumers around the world," stated CEO and president Ernie Herrman.
TJX reported net income of $1.5 billion for the quarter ended Aug. 2, up 22% from $1.24 billion in the. year-ago quarter. Adjusted diluted earnings per share were $1.22, beating analyst projections of $1.19.
Net sales rose 5% to $15.2 billion, in line with Wall Street predictions. Comparable sales rose 4% year over year.
By division, same-store sales rose 7% at Home Goods (includes HomeGoods and Homesense stores) and 1% at Marmaxx (includes TJ Maxx, Marshalls and Sierra stores as well as their e-commerce sites). Same-store sales rose 6% at TJX Canada and were up 7% at TJX International.
[READ MORE: TJX is set to open all five of its brands at one Texas center]
Tariff refunds
During the second quarter of fiscal 2027, TJX received aggregate refunds of $331 million for a portion of the IEEPA tariffs it previously paid. As a result, these tariff refunds benefitted the company’s second quarter fiscal 2027 cost of sales as well as the segment profit of the company’s U.S. segments
In the third quarter of fiscal 2027, the company expects to receive additional IEEPA tariff refunds, which it expects to benefit third quarter fiscal 2027 cost of sales. Due to these expected tariff refunds, TJX expects to accrue incremental expense for year-end incentive compensation and discretionary bonuses that will impact its third quarter fiscal 2027 cost of sales and selling, general & administrative costs.
The company increased its store count during the quarter by 23 stores to a total of 5,285 locations.
“I am very pleased with our above-plan consolidated results in the second quarter,” said Herrman. “Overall comparable sales increased 4%, above our plan, and both profitability and earnings per share well exceeded our expectations. While sales at Marmaxx were below our expectations, HomeGoods, TJX Canada, and TJX International all delivered terrific comp sales increases of 6% to 7%, which underscores the strength of our global diversified business.”
TJX advised that the amount, timing and likelihood of additional tariff refund recovery remain uncertain, total amount of refunds received may not equal the full amount of IEEPA related tariffs it paid, and additional refunds remain subject to further legal, regulatory or administrative developments.
Guidance
For the third quarter of fiscal 2027, TJX is planning consolidated comparable sales to be up 2% to 3% and expects diluted earnings per share to be in the range of $1.36 to $1.38. Excluding an expected net benefit of $.06 from tariff refunds, the company expects adjusted diluted earnings per share to be in the range of $1.30 to $1.32.
For the full year fiscal 2027, TJX continues to expect consolidated comparable sales to be up 3% to 4% and is increasing its full-year diluted earnings per share outlook to be in the range of $5.31 to $5.36. Excluding an expected net benefit of $.16 from tariff refunds, the company is increasing its full year outlook for adjusted diluted earnings per share to be in the range of $5.15 to $5.20.
Based in Framingham, Mass., TJX Cos. operates over 5,200 stores across 10 countries, including TJ Maxx, Marshalls, HomeGoods, Homesense, and Sierra in the U.S.; Winners, HomeSense, and Marshalls in Canada; TK Maxx and Homesense in Europe; and TK Maxx in Australia. It also operates e-commerce sites for TJ Maxx, Marshalls, and Sierra in the U.S. and three sites for TK Maxx in Europe.
