The TJX Companies, Inc. reported earnings rose 29 percent in the first quarter as consolidated comparable sales increased 6 percent, well above the company’s plan. The off-pricer lifted its guidance for the year. Sierra closed the quarter with 153 stores, up from 145 at the start of the quarter.

Net sales for the first quarter were $14.3 billion, an increase of 9 percent versus the first quarter of Fiscal 2026 and topping analysts’ consensus target of $13.94 billion. Net income for the first quarter of fiscal 2027 was $1.3 billion and diluted earnings per share were $1.19 against 92 cents in the first quarter of Fiscal 2026. Analysts’ consensus target was $1.00.

Ernie Herrman, chief executive officer 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.”

The company’s comparable sales by division for the first quarter of Fiscal 2027 and Fiscal 2026 were as follows:

Net Sales by Division

The company’s net sales by division for the first quarter of Fiscal 2027 and Fiscal 2026 were as follows:

Margins
For the first quarter of Fiscal 2027, the company’s pretax profit margin was 12.0 percent, well above the company’s plan and 1.7 percentage points above last year’s first quarter pretax profit margin of 10.3 percent.

Gross profit margin for the first quarter of Fiscal 2027 was 31.3 percent, up 1.8 percentage points versus last year’s 29.5 percent, driven by an increase in merchandise margin, a benefit from favorable inventory and fuel hedges, and expense leverage on sales.

Selling, general, and administrative (SG&A) costs as a percent of sales for the first quarter of Fiscal 2027 were 19.5 percent, a 0.1 percentage point increase versus last year’s 19.4 percent.

Net interest income had a neutral impact to first quarter Fiscal 2027 pretax profit margin versus the prior year.

The company’s first quarter Fiscal 2027 pretax profit margin was well above its plan, primarily driven by expense leverage on above-plan sales, favorable fuel hedges, and a stronger-than-expected merchandise margin.

Inventory
Total inventories as of May 2, 2026 were $7.7 billion, compared to $7.1 billion at the end of the first quarter of Fiscal 2026. Consolidated inventories on a per-store basis as of May 2, 2026, including distribution centers, but excluding inventory in transit and the company’s e-commerce sites, were up 7 percent on a reported basis, and up 6 percent on a constant currency basis, versus last year. The company’s inventory position reflects the excellent buying opportunities it saw in the marketplace during the first quarter. The company is well-positioned to take advantage of the outstanding availability of quality merchandise and flow fresh assortments to its stores and online this spring and summer. Inventory on a constant currency basis reflects inventory adjusted for the impact of foreign currency, if any, as described below.

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 percent to 3 percent, pretax profit margin to be in the range of 11.4 percent to 11.5 percent, 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 percent to 4 percent. The company is increasing its pretax profit margin outlook to be in the range of 11.9 percent to 12.0 percent 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.

Stores by Concept
During the fiscal quarter ended May 2, 2026, the company increased its store count by 48 stores overall to a total of 5,262 stores and increased total square footage by 0.8 percent versus the prior quarter.

Image courtesy The TJX Companies, Inc.