For the quarter ended August 1, 2026, net sales rose 5 per cent year on year (YoY) to $15.18 billion, while consolidated comparable sales increased 4 per cent. Net income advanced to $1.52 billion, up from $1.24 billion in the prior-year period. Diluted earnings per share (EPS) reached $1.36, a 24 per cent YoY increase.
TJX posted Q2 FY27 results, with sales up 5 per cent to $15.18 billion, comparable sales up 4 per cent and EPS up 24 per cent.
HomeGoods, Canada and International led growth, while Marmaxx lagged, affecting demand mix for apparel and home fashion suppliers.
The retailer raised FY27 EPS and margin guidance, expects 3 to 4 per cent comparable sales growth, and plans store expansion from FY28.
“I am very pleased with our above-plan consolidated results in the second quarter. Overall comparable sales increased 4 per cent, above our plan, and both profitability and earnings per share well exceeded our expectations,” said Ernie Herrman, chief executive officer and president, The TJX Companies, Inc.
Adjusted diluted EPS, which excludes a $0.14 net benefit from International Emergency Economic Powers Act (IEEPA) tariff refunds, was $1.22, up 11 per cent. The company’s pretax profit margin improved to 13.3 per cent from 11.4 per cent a year ago, and adjusted pretax profit margin stood at 11.9 per cent, up 0.5 percentage points YoY.
The gross profit margin expanded to 33.4 per cent, with adjusted gross profit margin at 31.4 per cent. Operating cash flow for the quarter was $2.2 billion, and TJX ended the period with $6.0 billion in cash, the company said in a press release.
Segment and regional performance
By division, Q2 comparable sales rose 1 per cent at Marmaxx (US), 7 per cent at HomeGoods (US), 6 per cent at TJX Canada, and 7 per cent at TJX International (Europe and Australia). Net sales reached $9.11 billion at Marmaxx, $2.51 billion at HomeGoods, $1.47 billion at TJX Canada, and $2.09 billion at TJX International. On a constant currency basis, TJX Canada and TJX International posted sales growth of 8 per cent and 10 per cent, respectively.
“While sales at Marmaxx were below our expectations, HomeGoods, TJX Canada, and TJX International all delivered terrific comp sales increases of 6 to 7 per cent, 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,” added Herrman.
Segment profit margins for Q2 were 15.6 per cent at Marmaxx, 17.6 per cent at HomeGoods, 15.6 per cent at TJX Canada, and 6.4 per cent at TJX International. Adjusted for tariff refunds and related compensation accruals, segment profit margins were 14.2 per cent at Marmaxx, 12.4 per cent at HomeGoods, 16.3 per cent at TJX Canada, and 7.3 per cent at TJX International. Foreign currency movements had a neutral to slightly positive impact on overall results.
Margin analysis and inventory
The company’s gross profit margin for Q2 expanded by 2.7 percentage points YoY to 33.4 per cent, supported by higher merchandise margins. Adjusted gross profit margin was 31.4 per cent, up 0.7 percentage points. Selling, general and administrative (SG&A) costs as a percentage of sales increased to 20.3 per cent, mainly due to higher store wage and payroll costs; adjusted SG&A costs were 19.7 per cent. Inventory at quarter-end stood at $7.86 billion, up from $7.37 billion a year earlier, positioning the company to flow fresh assortments for the upcoming fall season.
Guidance and outlook
Reflecting its strong Q2 performance, TJX raised its full-year FY27 outlook. The company now expects consolidated comparable sales to increase 3 to 4 per cent. Full-year pretax profit margin is forecast in the range of 12.3 to 12.4 per cent, with adjusted pretax profit margin (excluding tariff refund benefits) of 12.0 to 12.1 per cent. Diluted EPS guidance has been raised to $5.31 to $5.36, while adjusted diluted EPS is projected at $5.15 to $5.20.
For Q3 FY27, the company anticipates comparable sales growth of 2 to 3 per cent, pretax profit margin of 12.8 to 12.9 per cent (or 12.3 to 12.4 per cent adjusted), and diluted EPS of $1.36 to $1.38 (or $1.30 to $1.32 adjusted).
Looking ahead, TJX plans to accelerate its store growth to 4 per cent annually beginning in FY28 and has increased its long-term global store target to 7,500 stores across its existing retail banners and countries. The company remains confident in its growth trajectory and ability to deliver value to consumers worldwide.
Fibre2Fashion News Desk
