TJX exceeds Q2 sales forecasts with 4 percent comp sales growth

US off-price retailer The TJX Companies (TJX) has reported net sales of 15.18 billion dollars for the second quarter ended August 1, 2026, representing a 5 percent increase compared to the same period in the prior year. Consolidated comparable sales, or comp sales, grew 4 percent, exceeding company forecasts.

Net income for the quarter reached 1.52 billion dollars. Diluted earnings per share, or EPS, rose 24% to 1.36 dollars. Excluding a net benefit of 0.14 dollars per share from International Emergency Economic Powers Act (IEEPA) tariff refunds, adjusted diluted EPS grew 11 percent to 1.22 dollars.

For the first half of fiscal 2027, net sales rose 7 percent to 29.50 billion dollars, while first half consolidated comp sales increased 5 percent. Net income for the six-month period stood at 2.85 billion dollars. First half diluted EPS reached 2.55 dollars, or 2.41 dollars on an adjusted basis.

Chief executive officer and president Ernie Herrman noted that profitability and EPS surpassed internal expectations, despite Marmaxx division sales tracking below original targets. "With our strong second quarter profit results, we are raising our pretax profit margin and earnings per share outlook for the full year," Herrman added.

Segment performance and store footprint

Divisionally, TJX experienced solid comp sales growth across most concepts. HomeGoods delivered a 7 percent comp sales increase, while TJX Canada and TJX International reported comp sales growth of 6 percent and 7 percent respectively.

The Marmaxx division recorded a 1 percent comp sales increase for the quarter. Reported net sales for Marmaxx rose 3 percent to 9.11 billion dollars. Net sales for HomeGoods expanded 10 percent to 2.51 billion dollars. TJX Canada grew net sales 6 percent to 1.47 billion dollars, while TJX International climbed 11 percent to 2.09 billion dollars. The group added 23 net store locations during the quarter, bringing its global total to 5,285 stores.

Margins and capital allocation

Pretax profit margin for the second quarter stood at 13.3 percent, up 1.9 percentage points year-over-year. On an adjusted basis, pretax profit margin rose 0.5 percentage points to 11.9 percent. Gross profit margin came in at 33.4 percent, or 31.4 percent on an adjusted basis, supported by improved merchandise margins.

The business generated 2.19 billion dollars in operating cash flow during the first half and ended the quarter with 6 billion dollars in cash and cash equivalents. TJX returned 1.30 billion dollars to shareholders during the second quarter through 798 million dollars in share repurchases and 529 million dollars in dividend payments.

Fiscal 2027 outlook and strategic acceleration

Herrman stated that third quarter momentum was off to a strong start, with trends improving at Marmaxx.

For the third quarter of fiscal 2027, TJX projects consolidated comp sales to rise 2 percent to 3 percent. Pretax profit margin is planned between 12.8 percent and 12.9 percent, with adjusted pretax profit margin anticipated between 12.3 percent and 12.4 percent. Diluted EPS is expected to range from 1.36 dollars to 1.38 dollars, or 1.30 dollars to 1.32 dollars on an adjusted basis.

For the full year fiscal 2027, consolidated comp sales growth expectations remain at 3 percent to 4 percent. Full year pretax profit margin guidance has been raised to a range of 12.3 percent to 12.4 percent, or 12 percent to 12.1 percent on an adjusted basis.

Full year diluted EPS guidance has been increased to between 5.31 dollars and 5.36 dollars, with adjusted diluted EPS targeted at 5.15 dollars to 5.20 dollars.

Beginning in fiscal 2028, TJX plans to accelerate annual store growth to 4 percent. The company has expanded its long-term global store target by 500 locations, aiming for an ultimate total of 7,500 stores across its existing banners.