The Investor
22 May 2025, 10:10
TJX Companies Reports Q1 FY26 Results: Beats Earnings Plan, Maintains Full-Year Guidance
The TJX Companies, Inc. (NYSE: TJX), the leading global off-price apparel and home fashions retailer, reported solid first quarter results for fiscal year 2026, driven by broad-based sales growth and strong customer traffic.
Key Q1 Highlights:
• Net sales: $13.1 billion, up 5% year-over-year
• Consolidated comparable sales: +3%, at the high end of TJX’s expectations
• Diluted EPS: $0.92, above company plan, compared to $0.93 in Q1 FY25
• Pretax profit margin: 10.3%, ahead of plan but down from 11.1% a year ago
• Net income: $1.0 billion
• Operating cash flow: $394 million
• Shareholder returns: $1.0 billion returned via $613 million in stock repurchases and $420 million in dividends
CEO Commentary:
CEO Ernie Herrman praised the strong quarter, noting comp sales growth across all geographies and divisions. He emphasized confidence in TJX’s off-price model and the company’s ability to gain market share globally. Herrman highlighted robust customer response, especially to value-oriented fashion and brand assortments, and said the second quarter was off to a “strong start.”
Sales Performance by Division (Comparable Sales YoY):
• Marmaxx (U.S.): +2%
• HomeGoods (U.S.): +4%
• TJX Canada: +5%
• TJX International (Europe & Australia): +5%
Sales Performance by Division (Net Sales):
• Marmaxx: $8.05 billion (+4%)
• HomeGoods: $2.25 billion (+8%)
• TJX Canada: $1.14 billion (+3%, +7% constant currency)
• TJX International: $1.66 billion (+8%, +7% constant currency)
Margins and Inventory:
• Gross margin fell 0.5 pts to 29.5%, primarily due to negative inventory hedge adjustments.
• SG&A increased to 19.4% of sales, slightly up from 19.2% last year.
• Inventory grew to $7.1 billion, up from $6.2 billion YoY, as TJX leveraged market availability to stock stores for spring/summer.
Outlook:
• Q2 FY26:
o Comp sales growth: +2% to +3%
o EPS: $0.97 to $1.00 (up 1%–4% YoY)
o Pretax profit margin: 10.4% to 10.5% (down from 10.9% YoY)
• Full-Year FY26:
o Comp sales growth: +2% to +3%
o EPS: $4.34 to $4.43 (up 2%–4% YoY)
o Pretax profit margin: 11.3% to 11.4% (vs. 11.5% in FY25)
Store Count:
TJX operated 5,121 stores as of May 3, 2025, with a 0.6% increase in square footage from the prior quarter. Growth included additions across the U.S., Canada, and Europe.
Balance Sheet Snapshot (as of May 3, 2025):
• Cash & equivalents: $4.26 billion
• Total assets: $31.9 billion
• Shareholders’ equity: $8.5 billion
• Long-term debt: $2.87 billion
TJX reaffirmed its commitment to stock repurchases, with $2.9 billion still authorized under its current buyback plan.
The TJX Companies, Inc. (NYSE: TJX), the leading global off-price apparel and home fashions retailer, reported solid first quarter results for fiscal year 2026, driven by broad-based sales growth and strong customer traffic.
Key Q1 Highlights:
• Net sales: $13.1 billion, up 5% year-over-year
• Consolidated comparable sales: +3%, at the high end of TJX’s expectations
• Diluted EPS: $0.92, above company plan, compared to $0.93 in Q1 FY25
• Pretax profit margin: 10.3%, ahead of plan but down from 11.1% a year ago
• Net income: $1.0 billion
• Operating cash flow: $394 million
• Shareholder returns: $1.0 billion returned via $613 million in stock repurchases and $420 million in dividends
CEO Commentary:
CEO Ernie Herrman praised the strong quarter, noting comp sales growth across all geographies and divisions. He emphasized confidence in TJX’s off-price model and the company’s ability to gain market share globally. Herrman highlighted robust customer response, especially to value-oriented fashion and brand assortments, and said the second quarter was off to a “strong start.”
Sales Performance by Division (Comparable Sales YoY):
• Marmaxx (U.S.): +2%
• HomeGoods (U.S.): +4%
• TJX Canada: +5%
• TJX International (Europe & Australia): +5%
Sales Performance by Division (Net Sales):
• Marmaxx: $8.05 billion (+4%)
• HomeGoods: $2.25 billion (+8%)
• TJX Canada: $1.14 billion (+3%, +7% constant currency)
• TJX International: $1.66 billion (+8%, +7% constant currency)
Margins and Inventory:
• Gross margin fell 0.5 pts to 29.5%, primarily due to negative inventory hedge adjustments.
• SG&A increased to 19.4% of sales, slightly up from 19.2% last year.
• Inventory grew to $7.1 billion, up from $6.2 billion YoY, as TJX leveraged market availability to stock stores for spring/summer.
Outlook:
• Q2 FY26:
o Comp sales growth: +2% to +3%
o EPS: $0.97 to $1.00 (up 1%–4% YoY)
o Pretax profit margin: 10.4% to 10.5% (down from 10.9% YoY)
• Full-Year FY26:
o Comp sales growth: +2% to +3%
o EPS: $4.34 to $4.43 (up 2%–4% YoY)
o Pretax profit margin: 11.3% to 11.4% (vs. 11.5% in FY25)
Store Count:
TJX operated 5,121 stores as of May 3, 2025, with a 0.6% increase in square footage from the prior quarter. Growth included additions across the U.S., Canada, and Europe.
Balance Sheet Snapshot (as of May 3, 2025):
• Cash & equivalents: $4.26 billion
• Total assets: $31.9 billion
• Shareholders’ equity: $8.5 billion
• Long-term debt: $2.87 billion
TJX reaffirmed its commitment to stock repurchases, with $2.9 billion still authorized under its current buyback plan.
