TJX Companies Inc
Q2 2027 Earnings
Excludes a net $0.14 per share benefit from $331 million in IEEPA tariff refunds partially offset by $112 million in related incremental compensation expense accruals. GAAP diluted EPS was $1.36.
Market Reaction
Did TJX Beat Earnings? Q2 2027 Results
TJX Companies delivered a solid beat to open its fiscal second quarter of 2027, posting adjusted diluted EPS of $1.22 against the $1.19 consensus estimate, a 2.66% beat that extends the off-price retailer's streak to five consecutive quarters of clearing Wall Street's bar. Revenue climbed 5.4% year-over-year to $15.18 billion, edging past the $15.17 billion consensus, as consolidated comparable sales rose 4%, ahead of management's own plan. The standout driver was broad-based momentum across international segments, with HomeGoods comps up 7%, TJX International up 7%, and TJX Canada up 6%, partly offset by softer Marmaxx comps of just 1%. Adjusted pretax profit margin expanded 0.5 percentage points to 11.9%, fueled by higher merchandise margin and strong branded merchandise availability. The quarter also included a net $0.14 per share benefit from $331 million in IEEPA tariff refunds, lifting GAAP diluted EPS to $1.36. TJX raised its full-year adjusted EPS outlook to $5.15 to $5.20 and guided Q3 adjusted EPS of $1.30 to $1.32, while announcing plans to accelerate store growth to 4% annually beginning in fiscal 2028.
- Above-plan consolidated comparable sales growth of 4%
- HomeGoods, TJX Canada, and TJX International delivered comp sales increases of 6% to 7%
- Increase in merchandise margin drove adjusted gross profit margin expansion of 0.7 percentage points
- IEEPA tariff refunds of $331 million provided $219 million net pretax benefit
- Outstanding availability of branded, quality merchandise in the marketplace
“I am very pleased with our above-plan consolidated results in the second quarter. Overall comparable sales increased 4%, above our plan, and both profitability and earnings per share well exceeded our expectations. While sales at Marmaxx were below our expectations, HomeGoods, TJX Canada, and TJX International all delivered terrific comp sales increases of 6% to 7%, which underscores the strength of our global diversified business.”
TJX Companies CEO, on the earnings call
Forward Guidance & Outlook
For Q3 FY27, TJX expects consolidated comparable sales up 2% to 3%, pretax profit margin of 12.8% to 12.9% (adjusted 12.3% to 12.4% excluding 0.5 pp tariff refund benefit), and diluted EPS of $1.36 to $1.38 (adjusted $1.30 to $1.32 excluding $0.06 tariff refund benefit). For full year FY27, the company continues to expect consolidated comp sales up 3% to 4% and raised its pretax profit margin outlook to 12.3% to 12.4% (adjusted 12.0% to 12.1%). Full year diluted EPS guidance was increased to $5.31 to $5.36 (adjusted $5.15 to $5.20). The company expects additional IEEPA tariff refunds in Q3 though amounts remain uncertain. Beginning in FY28, TJX plans to accelerate store opening growth to 4% and has increased its long-term global store target to 7,500 stores. The company expects to repurchase approximately $2.75 to $3.0 billion of TJX stock during FY27.
TJX YoY Financials
TJX Revenue by Segment
TJX Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.