TJX Cos. Inc. raised its EPS guidance for the year as second-quarter results topped guidance. Same-store sales grew 4 percent as below-plan results at its Marmaxx segment (TJ Maxx, Marshalls, and Sierra) were offset by strength at HomeGoods, TJX Canada, and TJX International. Three Sierra locations were opened in the period to close the quarter with 156.

Adjusted results exclude a benefit from International Emergency Economic Powers Act (“IEEPA”) tariff refunds that are partially offset by related incremental compensation expense accruals.

Net sales for the second quarter of fiscal 2027 ended August 1 were $15.2 billion, an increase of 5 percent versus the second quarter of fiscal 2026. Second quarter fiscal 2027 consolidated comparable sales increased 4 percent, topping company guidance in the range of positive 2 percent to 3 percent,

Net income for the second quarter of fiscal 2027 was $1.5 billion. Second quarter fiscal 2027 diluted earnings per share were $1.36, up 24 percent versus $1.10 in the second quarter of fiscal 2026. Excluding a $.14 net benefit from tariff refunds, second quarter fiscal 2027 adjusted diluted earnings per share were $1.22, up 11 percent versus the prior year. TJX’s guidance had called for EPS between $1.15 and $1.17.

For the first half of fiscal 2027, net sales were $29.5 billion, an increase of 7 percent versus the first half of fiscal 2026. First half fiscal 2027 consolidated comparable sales increased 5 percent. Net income for the first half of fiscal 2027 was $2.9 billion. First half fiscal 2027 diluted earnings per share were $2.55, up 26 percent versus $2.02 in the first half of fiscal 2026. Excluding a $.14 net benefit from tariff refunds, adjusted diluted earnings per share for the first half of Fiscal 2027 were $2.41, up 19 percent versus the prior year.

CEO and President Comments
Ernie Herrman, chief executive officer and president of The TJX Companies, Inc., stated, “I am very pleased with our above-plan consolidated results in the second quarter. Overall comparable sales increased 4 percent, 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 percent to 7 percent, which underscores the strength of our global diversified business. With our strong second quarter profit results, we are raising our pretax profit margin and earnings per share outlook for the full year. Looking ahead, the third quarter is off to a strong start, and we are seeing improvement at our Marmaxx division to start the quarter. Availability of branded, quality merchandise continues to be outstanding, and we have many initiatives in place to drive sales and traffic in the upcoming fall and holiday shopping seasons. Further, we are pleased to share that we are planning to accelerate our store openings to 4 percent starting next year and now believe we can grow our overall global store base to a total of 7,500 stores in our existing retail banners in our current countries over the long term. We remain very confident in the long runway for growth ahead for TJX and we are excited about the opportunities we see to bring great values to even more consumers around the world.”

Comparable Sales by Division
The company’s comparable sales by division for the second quarter of fiscal 2027 and fiscal 2026 were as follows:

Net Sales by Division
The company’s net sales by division for the second quarter of fiscal 2027 and fiscal 2026 were as follows:

Margins
For the second quarter of fiscal 2027, the company’s pretax profit margin was 13.3 percent, up 1.9 percentage points versus last year’s 11.4 percent. Excluding a 1.4 percentage point net benefit from tariff refunds, adjusted pretax profit margin was 11.9 percent, up 0.5 percentage points versus the prior year.

Gross profit margin for the second quarter of fiscal 2027 was 33.4 percent, up 2.7 percentage points versus last year’s 30.7 percent. Excluding a 2.0 percentage point net benefit from tariff refunds, adjusted gross profit margin was 31.4 percent, up 0.7 percentage points versus the prior year. This was driven by an increase in merchandise margin.

SG&A costs as a percent of sales for the second quarter of fiscal 2027 were 20.3 percent, up 0.8 percentage points versus last year’s 19.5 percent. Excluding a 0.6 percentage point negative impact from tariff refund related incremental compensation expense accruals, adjusted SG&A costs as a percent of sales were 19.7 percent, up 0.2 percentage points versus the prior year. This was driven by incremental store wage and payroll costs.

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

Inventory
Total inventories as of August 1, 2026 were $7.9 billion, compared to $7.4 billion at the end of the second quarter of fiscal 2026. Consolidated inventories on a per-store basis as of August 1, 2026, including distribution centers, but excluding inventory in transit and the company’s e-commerce sites, were up 2 percent on a reported basis, and up 3 percent on a constant currency basis, versus last year. The company is well positioned to take advantage of the outstanding availability in the marketplace and flow fresh assortments to its stores and online this fall. 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 second quarter of fiscal 2027, the company generated $2.2 billion of operating cash flow and ended the quarter with $6.0 billion of cash.

During the second quarter of fiscal 2027, the company returned a total of $1.3 billion to shareholders. The company repurchased 5.1 million shares of TJX stock for a total of $798 million and paid $529 million in shareholder dividends.

During the first half of fiscal 2027, the company returned a total of $2.4 billion to shareholders. The company repurchased 8.9 million shares of TJX stock for a total of $1.4 billion and paid $1.0 billion in shareholder dividends.

The company continues to expect to repurchase approximately $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.

IEEPA Tariff Refunds and Related Expense Accruals
During the second quarter of fiscal 2027, the company received aggregate refunds of $331 million for a portion of the IEEPA tariffs it previously paid. As a result, these tariff refunds benefitted the company’s second quarter fiscal 2027 cost of sales. Due to these tariff refunds, the company accrued incremental expenses of $112 million for year-end incentive compensation and discretionary bonuses for eligible Associates globally which impact both the company’s second quarter Fiscal 2027 cost of sales and SG&A costs. The net benefit of tariff refunds was $219 million for the company’s second quarter Fiscal 2027 pretax profit. The impact of tariff refunds and related incremental compensation expense accruals to the company’s second quarter fiscal 2027 gross profit margin, SG&A costs, pretax profit margin, and diluted earnings per share were as follows:

Additionally, tariff refunds benefit the segment profit of the company’s U.S. segments and the related incremental expense accruals for year-end incentive compensation and discretionary bonuses impact the segment profit of each of the company’s segments. The impact to the segment profit margin of each of the company’s segments for the second quarter of fiscal 2027 were as follows:

Third Quarter, Full Year Fiscal 2027, and Store Growth Outlook
In the third quarter of fiscal 2027, the company expects to receive additional IEEPA tariff refunds, which it expects to benefit the company’s third quarter fiscal 2027 cost of sales. Due to these expected tariff refunds, the company expects to accrue incremental expense for year-end incentive compensation and discretionary bonuses that will impact the company’s third quarter fiscal 2027 cost of sales and SG&A costs. The amount, timing and likelihood of additional tariff refund recovery remain uncertain. The total amount of refunds received may not equal the full amount of IEEPA related tariffs paid, and additional refunds remain subject to further legal, regulatory or administrative developments.

For the third quarter of fiscal 2027, the company is planning consolidated comparable sales to be up 2 percent to 3 percent. The company expects pretax profit margin to be in the range of 12.8 percent to 12.9 percent. Excluding an expected net benefit of 0.5 percentage points from tariff refunds, the company expects adjusted pretax profit margin to be in the range of 12.3 percent to 12.4 percent. The company expects diluted earnings per share to be in the range of $1.36 to $1.38. Excluding an expected net benefit of $.06 from tariff refunds, the company expects adjusted diluted earnings per share to be in the range of $1.30 to $1.32.

For the full year fiscal 2027, the company continues to expect consolidated comparable sales to be up 3 percent to 4 percent. The company is increasing its full-year pretax profit margin outlook to be in the range of 12.3 percent to 12.4 percent. Excluding an expected net benefit of 0.3 percentage points from tariff refunds, the company is increasing its full-year adjusted pretax profit margin outlook to be in the range of 12.0 percent to 12.1 percent. The company is increasing its full-year diluted earnings per share outlook to be in the range of $5.31 to $5.36. Excluding an expected net benefit of $.16 from tariff refunds, the company is increasing its full year outlook for adjusted diluted earnings per share to be in the range of $5.15 to $5.20.

Beginning in fiscal 2028, the company is planning to accelerate its store opening growth to 4 percent. The company is also increasing its long-term global store target by an additional 500 stores to a total of 7,500 stores for its existing retail banners in its current countries.

Stores by Concept
During the fiscal quarter ended August 1, 2026, the company increased its store count by 23 stores overall to a total of 5,285 stores and increased total square footage by 0.4 percent versus the prior quarter.

Image courtesy TJX