What it does
TJX is an off-price retailer of apparel, home fashions and other merchandise. It sells quality, fashionable, brand-name and designer goods at prices generally 20% to 60% below the regular prices charged by full-price department, specialty and online retailers for comparable merchandise.
Its retail banners include TJ Maxx, Marshalls, HomeGoods, Homesense, Winners, HomeSense, TK Maxx and Sierra. The assortment covers family apparel, footwear, accessories, beauty, jewelry, furniture, rugs, lighting, decorative accessories, tabletop, cookware, pet products, gourmet food, active and outdoor gear, and seasonal merchandise. The mix changes frequently rather than following the stable assortments typical of conventional retailers.
The business is built around a treasure-hunt shopping experience: shoppers may find branded merchandise, closeouts, special production, cancelled orders or manufacturer overruns, but selections vary by store and visit. Stores use flexible selling floors, with few permanent fixtures and no walls between departments, so merchandise categories can expand or contract as buying opportunities change.
TJX operates more than 5,200 stores and six branded e-commerce sites. It has four reportable segments: Marmaxx and HomeGoods in the United States, TJX Canada, and TJX International in Europe and Australia. Sierra operates in the United States and is included in Marmaxx. Ernie Herrman is Chief Executive Officer and President.
How it makes money
TJX earns revenue when customers buy merchandise in its stores and on its e-commerce sites. Fiscal 2026 net sales were $60.4 billion; in the second quarter of fiscal 2027, consolidated comparable sales increased 4%.
Marmaxx, which includes TJ Maxx, Marshalls and Sierra, was the largest segment, with $36.6 billion of revenue in FY2026, or 60.6% of revenue. HomeGoods generated $10.2 billion, TJX International generated $8.0 billion, and TJX Canada generated $5.6 billion. The company also sells online, though its six e-commerce sites combined represented approximately 2% of total sales in fiscal 2026.
The model depends on buying merchandise below conventional wholesale terms and reselling it at a price below comparable full-price retail prices. TJX does not generally use sales or coupons. Instead, its everyday pricing is intended to maintain a price gap with full-price retailers while merchandise turns quickly. It also buys some merchandise for later seasons, known as packaway, when it sees suitable buying opportunities.
Revenue recurs through repeated store visits rather than subscriptions or contracted customer revenue. The company aims to encourage return visits with new assortments, centrally managed pricing and markdowns, and merchandise allocations tailored to local preferences. Sales tend to be higher in the second half of the year, which includes back-to-school and year-end holiday shopping.
In fiscal 2026, consolidated comparable sales rose 5%, supported by both a higher average basket and more customer transactions. Management said on the call that second-quarter comparable sales were also driven by a higher average basket and an increase in customer transactions.
| Segment | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| Marmaxx | $36.6 billion | 60.6% | 5.72% |
| HomeGoods | $10.2 billion | 16.8% | 8.37% |
| TJX International | $8.0 billion | 13.2% | 11.2% |
| TJX Canada | $5.6 billion | 9.32% | 8.48% |
Customers and how it sells
TJX targets a broad customer base across income levels and age groups with its combination of brands, fashion, quality and value. Its merchandise ranges from family apparel and footwear to furniture, home décor, outdoor gear and food, allowing its banners to serve shoppers with different needs. The company says its offering reaches customers across a wide range of income levels, while management said on the call that its banners appeal across many age and income demographics.
The United States is the core market. Marmaxx and HomeGoods operate there, while Sierra is included in Marmaxx. Canada is served by Winners, HomeSense and Marshalls. Europe is served by TK Maxx and Homesense in the U.K., Ireland, Germany, Poland, Austria, the Netherlands and Spain, while Australia has TK Maxx stores. Spain began operating in March 2026.
Physical stores are the primary channel. As of January 31, 2026, TJX had 5,214 stores, while digital sales remained a small part of the business. It operates six branded sites: tjmaxx.com, marshalls.com, sierra.com, tkmaxx.com, tkmaxx.de and tkmaxx.at. Store and online customers see rapidly changing merchandise, and the company uses allocation systems to tailor inventory to local preferences and demographics.
The company had 377,000 Associates as of January 31, 2026, with approximately 86% working in retail stores.
| Segment | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| Marmaxx | $36.6 billion | 60.6% | 5.72% |
| HomeGoods | $10.2 billion | 16.8% | 8.37% |
| TJX International | $8.0 billion | 13.2% | 11.2% |
| TJX Canada | $5.6 billion | 9.32% | 8.48% |
Suppliers and costs
TJX buys from manufacturers, retailers and other vendors rather than relying on a narrow group of named suppliers. Its vendor universe included approximately 21,000 suppliers globally in fiscal 2026, including thousands of new vendors, and its buying organization has offices around the world. It buys from more than 100 countries through closeouts, special production, cancelled orders, overruns and other market opportunities.
The company says it can buy quantities ranging from small to very large, accept less-than-full assortments, distribute merchandise across a geographically diverse store base, and pay according to its terms without seeking customary retail concessions or return privileges. These practices support access to merchandise but also make freight, tariffs, exchange rates, transport capacity and vendor pricing relevant costs.
Cost of sales, including buying and occupancy costs, was 69.0% of net sales in fiscal 2026. Selling, general and administrative expense was 19.1% of net sales. TJX seeks to operate with a lower cost structure than many traditional retailers through banner-focused advertising, modest spending on store fixtures and a cost-effective distribution network. It was reported on 26 October 2026 that TJX spent 1.10% of sales on marketing in 2025.
- Revenue$60.4B
- Cost of revenue−$41.7B
- Selling, general and administrative−$11.5B
- Operating income$7.2B
Competitive position
TJX competes with local, regional, national and international department, specialty, off-price, discount, warehouse and outlet stores, as well as retailers selling apparel, home fashions and related merchandise through stores, online channels and other media. Competition spans brand, fashion, price, quality, selection, merchandise freshness, service, reputation, location and the shopping experience.
Ross Stores is named in reporting on retail marketing spending. It was reported on 26 October 2026 that Ross spent 0.4% of sales on marketing in 2025, compared with 1.10% at TJX. TJX also operates against full-price department, specialty and major online retailers because its stated price proposition compares its merchandise with those channels.
Our reading: TJX’s buying scale and broad vendor network are a meaningful moat source because they give its buyers access to a changing pool of merchandise and allow the company to place purchases across a large store network.
Our reading: The flexible buying, inventory, store-layout and distribution model is a meaningful moat source because it is designed to accommodate uneven assortments and react closer to the selling season.
Our reading: Banner awareness and the treasure-hunt format are supporting moat sources, but apparel, home fashions and value retail remain competitive categories where shoppers can compare price, selection and convenience across physical and digital channels.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Ross Stores | retail marketing and off-price retail | Medium |
Growth opportunities
New-store expansion is a central growth path. At January 31, 2026, TJX estimated long-term potential for 7,000 stores in its then-current geographies, compared with 5,214 stores at year-end. Management said on the call that the company increased its long-term store-growth potential to 7,500 stores, or more than 2,200 additional stores, using existing retail banners within its current 10 countries. Management also said it plans to accelerate store openings to 4% beginning next year.
Management said on the call that the revised potential includes a combined 3,300 stores for TJ Maxx and Marshalls and 2,000 stores for HomeGoods. International expansion is another route: TK Maxx began operating in Spain in March 2026, and management said on the call that customer response to its first Spanish stores was positive. The company also cited its Mexico joint venture and investment in Brands For Less as part of its approach to entering new countries.
Comparable sales, more customer transactions, higher average baskets, merchandising initiatives and digital and social-media marketing are additional routes to sales growth. In fiscal 2026, net sales increased 7% and comparable sales increased 5%. In the fiscal 2027 second quarter, comparable sales increased 4%; HomeGoods, TJX Canada and TJX International each delivered comparable-sales increases of 6% to 7%, while Marmaxx increased 1%.
Management said on the call that merchandise availability remained strong across categories and brands, and that the company had more availability than it could buy.
- $48.6BFY2022
- $49.9BFY2023
- $54.2BFY2024
- $56.4BFY2025
- $60.4BFY2026
- $0.03FY2027 guidance
Structural risks
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Failure to execute opportunistic buying or manage inventory could affect results. The model depends on selecting the right merchandise, allocating it to the right stores and turning it promptly while keeping markdown exposure controlled.
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Imported merchandise and logistics face exposure to manufacturing disruption, transport capacity and costs, trade restrictions, tariffs, duties, sanctions, political or military disruption, and third-party distribution or warehousing problems.
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Consumer confidence and discretionary spending can be affected by global or local economic conditions, geopolitical uncertainty and other instability. The business is also seasonal, with higher sales and income generally occurring in the back-to-school and year-end holiday periods.
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International operations expose reported results and merchandise costs to currency movements. Exchange rates can affect translated sales and earnings, while transactional foreign exchange and inventory hedges can affect costs and margins.
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Management said on the call that Marmaxx had self-inflicted merchandise-mix execution issues in the second quarter, when its comparable sales increased 1%. Management said it had identified the issues and was seeing improvement at the start of the third quarter.
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Management said on the call that higher fuel rates and lower truck-driver availability were raising freight costs in the second half. Product safety, labor, environmental, supply-chain, data protection, cybersecurity, tax and other compliance requirements also create operational and financial risks.
Bottom line
Our reading
Our reading: TJX is a large store-led off-price retailer whose operating model rests on buying flexibility, a broad vendor base, rapid merchandise turnover and a changing in-store assortment. Its sales base is led by Marmaxx, while HomeGoods, Canada and International add category and geographic exposure. Store expansion remains a stated growth route, but execution at Marmaxx, freight and tariff costs, consumer discretionary demand, currency movements and international supply-chain disruption remain material variables.