TJX Q4 beats estimate, Q1 off to ‘strong start;' to open 146 new stores
The TJX Companies ended its fiscal year on a strong note, with better-than-expected fourth-quarter earnings and sales and annual revenue that surpassed the $60 billion mark for the first time.
The off-price powerhouse said it’s off to a “strong start" in its first quarter, but offered a softer-than-expected outlook. On the earnings call, TJX executives said the company expects to open 146 net new stores in 2026, which would bring its year-end total to well over 5,300 locations. It also plans to execute more than 540 remodels.
Net income was $1.8 billion, with earnings per share of $1.58, for the quarter ended Jan. 31, up 28% versus $1.23 per share in the year-ago period. Adjusted earnings per share were $1.43, up 16% versus the prior year and beating analysts estimates of $1.39 per share. Capital expenditures are expected to range from $2.2 billion to $2.3 billion.
Net sales rose 9% to $17.7 billion, topping estimates of $1.74 billion. Consolidated comparable sales increased 5%.
By division, comparable sales rose 6% at HomeGoods (includes HomeSense) and 5% at Marmaxx (includes TJ Maxx, Marshalls, and Sierra stores). Comp sales at TJX Canada increased 7%, and were up 4% at TJX International (Europe and Australia).
For the full year, net sales rose 7% to $60.4 billion. Consolidated comparable sales increased 5%.
The retailer increased its store count by 129 stores during the year ended Jan. 31, to a total of 5,214 stores
In a statement, TJX president and CEO Ernie Herrman said the company delivered above-plan results on both the top- and bottom-line in 2025.
“We are pleased with the strong and consistent sales performance across all of our businesses, with each division delivering comp sales growth of 4% or better for the year,” he said. “We had an excellent fourth quarter, with sales, profitability, and earnings per share all well above our plan. As we begin 2026, the first quarter is off to a strong start and availability of quality merchandise continues to be outstanding.”
For the first quarter of fiscal 2027, the company is planning consolidated comparable sales to be up 2% to 3%, pretax profit margin to be in the range of 10.3% to 10.4%, and diluted earnings per share to be in the range of $.97 to $.99.
For the full year (fiscal 2027), TJX is planning consolidated comparable sales to be up 2% to 3%, less than analysts expected. Earnings per share are expected to be in the range of $4.93 to $5.02, also less than expected.
In other news, the company boosted its share-repurchase program by $3 billion and plans to buy back $2.5 billion to $2.75 billion worth of stock during the current fiscal year. It also announced a 13% increase to its quarterly dividend.
