TJX Companies reported second-quarter fiscal 2027 adjusted diluted earnings per share of $1.22, an 11% year-over-year increase and ahead of the $1.19 consensus estimate. Revenue rose 7% to $15.2 billion, slightly exceeding the $15.19 billion forecast. Comparable sales grew 4%, driven by a higher average basket size and increased customer transactions.
Segment performance varied, with HomeGoods and TJX International both posting 7% comp growth, while Marmaxx, which includes TJ Maxx and Marshalls, reported a 1% increase. Adjusted pre-tax profit margin expanded by 50 basis points to 11.9%, supported by a 70-basis-point rise in adjusted gross margin to 31.4%, partly due to tariff favorability. However, adjusted SG&A costs increased by 20 basis points to 19.7% year-over-year, reflecting higher store wages and payroll expenses.
The company returned $1.3 billion to shareholders through buybacks and dividends during the quarter, marking the 47th consecutive year of dividend payments. Shares fell 2.81% to $146.61 in pre-market trading, despite the earnings beat.
For the full fiscal year 2027, management guided for comparable sales growth of 3% to 4% and total sales between $63.4 billion and $63.8 billion. Adjusted pre-tax profit margin is expected to range from 12% to 12.1%, with adjusted diluted EPS projected between $5.15 and $5.20. Third-quarter guidance includes comp sales growth of 2% to 3%, sales of $15.6 billion to $15.8 billion, and adjusted EPS of $1.30 to $1.32.
Long-term store growth targets were raised by 500 locations to a total of 7,500 stores, with accelerated expansion of 4% annually starting next year. TJ Maxx and Marshalls are slated to add 300 stores to reach 3,300 locations, while HomeGoods plans to expand by 200 stores to 2,000 units. Inventory rose 7% year-over-year, with per-store inventory up 2%.
