TJX Companies Reports First Quarter Operating Results

May 20, 2026  by Karen Parrish in Business Strategy, Industry   

First Quarter Highlights

- Q1 consolidated comparable sales increased 6%, well above the Company’s plan

- Q1 pretax profit margin of 12.0%, up 1.7 percentage points versus last year and well above the Company’s plan

- Q1 diluted earnings per share of $1.19, up 29% versus last year and well above the Company’s plan

- Returned $1.1 billion to shareholders in Q1 through share repurchases and dividends

- Increases full year FY27 outlook for comp sales growth to 3% to 4%, pretax profit margin to 11.9% to 12.0%, diluted earnings per share to $5.08 to $5.15, and share buyback range to $2.75 to $3.0 billion

CEO and President Comments

Ernie Herrman, CEO and president of The TJX Companies, Inc., stated, “I am extremely pleased with our first quarter performance. Sales, pretax profit margin, and earnings per share were all well above our plan. Throughout the quarter, our teams around the globe successfully executed on our off-price fundamentals to deliver on our value mission and offer an exciting treasure-hunt shopping experience to customers, every day. All of our divisions delivered strong comparable sales growth and increases in customer transactions. With our above-plan first quarter results, we are raising our sales and profitability guidance for the full year. The second quarter is off to a good start, and we are excited about the initiatives we have planned to keep driving sales and attract consumers to our retail banners. Availability of quality, branded merchandise is outstanding, and we are well-positioned to take advantage of the plentiful buying opportunities we are seeing in the marketplace. Going forward, we are convinced that the flexibility and resiliency of our off-price business model will continue to be a tremendous advantage. We are energized by the opportunities we see to drive sales, continue expanding our global footprint, and capture additional market share around the world for many years to come.”

Cash and Shareholder Distributions

For the first quarter of Fiscal 2027, the Company generated $1.1 billion of operating cash flow and ended the quarter with $5.6 billion of cash.

During the first quarter of Fiscal 2027, the Company returned a total of $1.1 billion to shareholders. The Company repurchased 3.8 million shares of TJX stock for a total of $604 million and paid $471 million in shareholder dividends.

The Company is increasing its range for share repurchases to $2.75 to $3.0 billion of TJX stock during Fiscal 2027. The Company may adjust the amount purchased under this plan up or down depending on various factors. The Company remains committed to returning cash to its shareholders while continuing to invest in the business to support the near- and long-term growth of TJX.

Second Quarter and Full Year Fiscal 2027 Outlook

For the second 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 11.4% to 11.5%, and diluted earnings per share to be in the range of $1.15 to $1.17.

For the full year Fiscal 2027, the Company is raising its consolidated comparable sales outlook to be up 3% to 4%. The Company is increasing its pretax profit margin outlook to be in the range of 11.9% to 12.0% and raising its diluted earnings per share outlook to be in the range of $5.08 to $5.15.

The Company is not flowing through the entirety of its first quarter Fiscal 2027 above-plan pretax profit margin and diluted earnings per share performance to its full year Fiscal 2027 outlook. The Company’s full year Fiscal 2027 outlook now assumes that a higher cost of fuel will be in place for the remainder of the year and that it will be unfavorable to pretax profit margin and diluted earnings per share versus its previous outlook.

Impact of Foreign Currency

Changes in foreign currency exchange rates affect the translation of sales and earnings of the Company’s international businesses into U.S. dollars for financial reporting purposes. In addition, ordinary course, inventory-related hedging instruments are marked to market at the end of each quarter. Changes in currency exchange rates can have a material effect on the magnitude of these translations and adjustments when there is significant volatility in currency exchange rates. Given the global operations of the Company, to facilitate comparability, the Company has provided sales growth and inventory on a constant currency basis, which assumes a constant exchange rate between periods for translation based on the rate in effect for the prior period.

The movement in foreign currency exchange rates had a one percentage point positive impact on the Company’s net sales growth in the first quarter of Fiscal 2027 versus the prior year. The overall net impact of foreign currency exchange rates had a $.01 positive impact on first quarter Fiscal 2027 diluted earnings per share.

A table detailing the impact of foreign currency on TJX’s net sales and pretax profit margin, as well as those of its international businesses, can be found in the Investors section of TJX.com.

The foreign currency exchange rate impact to diluted earnings per share does not include the impact currency exchange rates have on various transactions, which the Company refers to as “transactional foreign exchange.”

First Quarter Fiscal 2027 Earnings Conference Call

At 11:00 a.m. ET today, Ernie Herrman, Chief Executive Officer and President of TJX, will hold a conference call to discuss the Company’s first quarter Fiscal 2027 results, operations, and business trends. A real-time webcast of the call will be available to the public at TJX.com. A replay of the call will also be available by dialing (866) 367-5577 (toll free) or (203) 369-0233 through Tuesday, May 26, 2026, or at TJX.com.