TJX Companies (TJX) investor relations material

Executive summary

• Net sales rose 5% year-over-year to $15.2 billion for Q2 FY27, with consolidated comparable sales up 4%, exceeding plan.

• Diluted EPS increased to $1.36, up 24% year-over-year; adjusted EPS was $1.22, up 11%.

• Pre-tax profit margin improved to 13.3% from 11.4% year-over-year; adjusted pre-tax margin was 11.9%, up 0.5 points.

• Strong performance in HomeGoods, TJX Canada, and TJX International, each posting 6–7% comp sales growth; Marmaxx lagged with 1% comp increase.

• $1.3 billion was returned to shareholders via buybacks and dividends in Q2.

Financial highlights

• Net income for Q2 was $1.52 billion, up from $1.24 billion year-over-year; first half net income was $2.85 billion.

• Gross profit margin reached 33.4%, up 2.7 points; adjusted gross margin was 31.4%, up 0.7 points.

• SG&A expense ratio was 20.3%, up from 19.5% year-over-year; adjusted SG&A was 19.7%, up 0.2 points.

• Operating cash flow for Q2 was $2.2 billion; cash and cash equivalents at quarter-end were $6.0 billion.

• Inventory increased 7% overall and 2% per store; capital expenditures for the first half totaled $1.16 billion.

Outlook and guidance

• Q3 comp sales expected to rise 2–3%; consolidated sales projected at $15.6–$15.8 billion.

• Q3 pre-tax profit margin forecast at 12.8–12.9% (adjusted: 12.3–12.4%); adjusted EPS expected at $1.30–$1.32.

• Full-year comp sales growth expected at 3–4%; consolidated sales $63.4–$63.8 billion.

• Full-year pre-tax profit margin raised to 12.3–12.4% (adjusted: 12.0–12.1%); adjusted EPS raised to $5.15–$5.20.

• Store growth target increased to 7,500 globally, with annual growth accelerating to 4% starting next year.