WS Investor
20 May 2026, 14:16
TJX Surges 4.7% as Off-Price Model Delivers Standout Quarter Across Every Metric
TJX Companies jumped 4.7% today after the off-price retail giant delivered a first quarter that beat its own guidance on every key measure and raised its full-year outlook, reinforcing its position as one of the most resilient business models in consumer retail.
Net sales for Q1 fiscal 2027 reached $14.3 billion, up 9% year over year. Consolidated comparable sales grew 6%, well above plan, with strength across every division — Marmaxx up 6%, HomeGoods up 9%, TJX Canada up 7% and TJX International up 4%. CEO Ernie Herrman highlighted that all divisions delivered increases in customer transactions, a particularly meaningful signal in a consumer environment marked by value-seeking behavior.
Pretax profit margin expanded a striking 170 basis points to 12.0%, driven by higher merchandise margins, favorable inventory and fuel hedges and expense leverage on above-plan sales. Gross margin improved 180 basis points to 31.3%. Diluted EPS came in at $1.19, up 29% from $0.92 a year ago and well above guidance. The company generated $1.1 billion in operating cash flow and ended the quarter with $5.6 billion in cash, returning the full $1.1 billion to shareholders through buybacks and dividends.
For the full year, TJX raised comparable sales growth guidance to 3% to 4%, pretax profit margin to 11.9% to 12.0% and diluted EPS to $5.08 to $5.15. The share repurchase range was lifted to $2.75 to $3.0 billion. The company noted it is not flowing through the full Q1 outperformance to the full-year outlook, prudently assuming higher fuel costs for the remainder of the year.
The 4.7% gain reflects a market that sees TJX's off-price model as uniquely well-positioned for the current environment — when consumers trade down due to economic uncertainty, they trade into TJX, and outstanding branded merchandise availability in a disrupted supply chain only adds to the advantage.
TJX Companies jumped 4.7% today after the off-price retail giant delivered a first quarter that beat its own guidance on every key measure and raised its full-year outlook, reinforcing its position as one of the most resilient business models in consumer retail.
Net sales for Q1 fiscal 2027 reached $14.3 billion, up 9% year over year. Consolidated comparable sales grew 6%, well above plan, with strength across every division — Marmaxx up 6%, HomeGoods up 9%, TJX Canada up 7% and TJX International up 4%. CEO Ernie Herrman highlighted that all divisions delivered increases in customer transactions, a particularly meaningful signal in a consumer environment marked by value-seeking behavior.
Pretax profit margin expanded a striking 170 basis points to 12.0%, driven by higher merchandise margins, favorable inventory and fuel hedges and expense leverage on above-plan sales. Gross margin improved 180 basis points to 31.3%. Diluted EPS came in at $1.19, up 29% from $0.92 a year ago and well above guidance. The company generated $1.1 billion in operating cash flow and ended the quarter with $5.6 billion in cash, returning the full $1.1 billion to shareholders through buybacks and dividends.
For the full year, TJX raised comparable sales growth guidance to 3% to 4%, pretax profit margin to 11.9% to 12.0% and diluted EPS to $5.08 to $5.15. The share repurchase range was lifted to $2.75 to $3.0 billion. The company noted it is not flowing through the full Q1 outperformance to the full-year outlook, prudently assuming higher fuel costs for the remainder of the year.
The 4.7% gain reflects a market that sees TJX's off-price model as uniquely well-positioned for the current environment — when consumers trade down due to economic uncertainty, they trade into TJX, and outstanding branded merchandise availability in a disrupted supply chain only adds to the advantage.
