TJX Companies Q2 Sales Up 5%, EPS Climbs 24%

By Ahmed Jamerson • Wednesday, August 19 16:06 • Permanent Link

The TJX Companies reported second-quarter fiscal 2027 net sales of $15.2 billion, up 5% from $14.4 billion a year earlier. Comparable sales rose 4%, matching the company’s overall pace from the prior year but coming in above plan.

Diluted earnings per share climbed to $1.36 from $1.10, a 24% increase. On an adjusted basis, EPS was $1.22, up 11% from $1.10. Net income reached $1.5 billion in the quarter.

Pretax profit margin widened to 13.3% from 11.4%, an increase of 1.9 percentage points. Gross margin improved to 33.4% from 30.7%, while SG&A rose to 20.3% of sales from 19.5%.

By division, comparable sales were strongest at HomeGoods, up 7%, and at TJX International, also up 7%. TJX Canada posted 6% comp growth. Marmaxx, the company’s largest U.S. division, rose 1% after a 3% gain a year earlier.

Second-quarter net sales by division were: Marmaxx: $9.1 billion, up from $8.8 billion HomeGoods: $2.5 billion, up from $2.3 billion TJX Canada: $1.47 billion, up from $1.38 billion TJX International: $2.09 billion, up from $1.89 billion

For the first half, TJX reported net sales of $29.5 billion, up 7% from $27.5 billion a year earlier. Comparable sales increased 5%. Diluted EPS rose to $2.55 from $2.02, a 26% increase. Adjusted EPS was $2.41, up 19% from $2.02.

Inventories at quarter-end were $7.9 billion, up from $7.4 billion a year earlier. The company ended the quarter with $6.0 billion in cash and generated $2.2 billion in operating cash flow.

TJX returned $1.3 billion to shareholders in the quarter, including $798 million in share repurchases and $529 million in dividends. In the first half, it returned $2.4 billion, made up of $1.4 billion in buybacks and $1.0 billion in dividends.

The company increased its full-year fiscal 2027 outlook. Pretax profit margin is now expected to be 12.3% to 12.4%, up from the prior outlook, and diluted EPS is now projected at $5.31 to $5.36. For the third quarter, TJX expects comparable sales growth of 2% to 3% and EPS of $1.36 to $1.38.

TJX also said it plans to accelerate store growth to 4% beginning in fiscal 2028 and raised its long-term global store target to 7,500 from 7,000. At the end of the quarter, the company operated 5,285 stores, up 23 from the prior quarter. The market has reacted to these announcements by moving the company's shares -3.61% to a price of $145.40. For more information, read the company's full 8-K submission here.

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