TJX Companies reported adjusted earnings per share of $1.22 for the second quarter of fiscal 2027, exceeding the $1.19 Wall Street consensus. Revenue reached $15.20 billion, while adjusted pre-tax margins rose to 11.9%, up 50 basis points year-over-year. Gross margin expanded to 31.4%, driven by a $331 million tariff refund, though selling, general and administrative expenses increased to 19.7% of sales, reflecting higher store wages.
The company’s core U.S. division, Marmaxx, reported flat comparable sales at 1%, with management attributing the underperformance to execution issues rather than competitive or pricing pressures. August trends showed improvement, and TJX expects a 2%–3% comparable sales cadence in the fourth quarter. HomeGoods led with a 7% comp gain and a 240-basis-point margin increase to 12.4%, while TJX Canada and TJX International both posted 6% and 7% comp growth, respectively.
For the third quarter, TJX guided profit to $1.30–$1.32 per share, below the $1.35 consensus. The full-year outlook was raised to $5.15–$5.20 per share from prior guidance. Shares fell 3.3% to $145.85 in early trading but later rebounded to $152.72 in after-hours activity.
TJX also accelerated its global store growth plan, raising its total store target to 7,500 locations, an increase of 500. Annual openings will rise to 4% starting in fiscal 2028, up from 3%. The company opened a second TK Maxx in Spain and indicated further European expansion. Valuation metrics showed the stock trading at 28.8x trailing earnings, with Morgan Stanley maintaining an Overweight rating and a $181 price target, while Evercore ISI described Marmaxx’s issues as temporary merchandising challenges.
