TJX Companies (TJX) Q1 2027 earnings summary

Executive summary

• Q1 FY27 net sales rose 9% to $14.3 billion, with consolidated comp sales up 6% and all divisions showing strong growth.

• Diluted EPS increased 29% to $1.19, and net income reached $1.3 billion, up from $1.0 billion in the prior year.

• Pre-tax profit margin improved to 12.0%, up 1.7 percentage points year-over-year, driven by higher merchandise margin and expense leverage.

• $1.1 billion was returned to shareholders via share repurchases and dividends in Q1.

• Initiatives in marketing, merchandising, and store experience are driving customer growth and market share gains.

Financial highlights

• Net sales: $14.3 billion, up 9% year-over-year; net income: $1.3 billion, up from $1.0 billion.

• Gross profit margin improved to 31.3%, up 1.8 percentage points year-over-year.

• SG&A expenses were 19.5% of sales, a slight increase from 19.4% last year.

• Operating cash flow was $1.1 billion, up from $394 million year-over-year.

• Inventory was up 8% overall and 7% per store, totaling $7.7 billion.

Outlook and guidance

• FY27 comparable sales growth outlook raised to 3%-4%; consolidated sales guidance raised to $63.2-$63.7 billion, up 5%-6%.

• Full-year pre-tax profit margin guided at 11.9%-12.0%; gross margin 31.2%-31.3%.

• Full-year diluted EPS raised to $5.08-$5.15, a 7%-9% increase year-over-year.

• Share buyback guidance increased to $2.75-$3.0 billion for FY27.

• Q2 FY27 guidance: comparable sales up 2%-3%, pretax profit margin 11.4%-11.5%, diluted EPS $1.15-$1.17.