Latest quarter
TJX reported Q2 FY2027 revenue of $15.2 billion, compared with the consensus of $15.1 billion. Adjusted EPS, as the consensus counts it, was $1.22, compared with the consensus of $1.18. The company reported diluted EPS of $1.36, versus $1.10 a year earlier.
The filing shows revenue increased 5.41% from Q2 FY2026, as consolidated comparable sales rose 4%; TJX attributed the increase to a higher average basket and more customer transactions. HomeGoods sales increased 10% to $2.5 billion, TJX Canada sales increased 6% to $1.5 billion, and TJX International sales increased 11% to $2.1 billion, while Marmaxx sales increased 3% to $9.1 billion.
Gross margin was 33.4%, versus 30.7% a year earlier, and operating margin was 13.1%, versus 11.2%. TJX attributed lower cost of sales as a share of revenue to tariff refunds and merchandise margin from higher markon. The company reported Q2 FY2027 free cash flow of $1.7 billion, compared with $1.3 billion a year earlier.
| Q2 FY2027 | Q2 FY2026 | Change | |
|---|---|---|---|
| Revenue | $15.2 billion | $14.4 billion | 5.41% |
| Diluted EPS | $1.36 | $1.10 | 23.6% |
| Gross margin | 33.4% | 30.7% | 2.7 percentage points |
| Operating margin | 13.1% | 11.2% | 1.8 percentage points |
| Free cash flow | $1.7 billion | $1.3 billion | 30.0% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $1.22 | $1.18 | Beat by 3.39% |
| Revenue | $15.2 billion | $15.1 billion | In line |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
Chief Executive Officer Ernie Herrman said consolidated comparable sales increased 4%, above the company’s plan, with the three divisions outside Marmaxx posting comparable-sales gains of 6% to 7%. He said Marmaxx sales were below the company’s expectations because its store merchandise mix could have been better aligned with the right goods, stores and timing.
Herrman told analysts that the Marmaxx issues were self-inflicted and within the company’s control. He said the company had identified the affected areas but would not specify merchandise families or categories for competitive reasons. He said improvement had begun in August, expected a transition over the following months, and said he was most confident of further improvement by the fourth quarter. In response to questions about Marmaxx transactions, Herrman said the company’s values had not been the issue; rather, certain impulse-driven and basic merchandise was absent from the mix.
Chief Financial Officer John said Q2 adjusted pre-tax profit margin was 11.9% and adjusted diluted EPS was $1.22, with results above the company’s plan. He attributed the margin result to operational expense efficiencies, merchandise margin and expense leverage on sales, partly offset by contributions to the company’s charitable foundations. John said adjusted SG&A reflected incremental store wage and payroll costs.
Herrman said product availability remained extensive and that the company planned marketing across channels, with an emphasis on digital and social media, for the fall and holiday period. He said the company had increased its long-term store potential to 7,500 stores and planned to accelerate store openings to 4% beginning in FY2028. John said new-store performance had exceeded the company’s expectations for a long time.
For the second half, John said higher fuel rates, freight costs and the company’s assumptions for comparable-sales growth differentiated its outlook from the first half. He said reduced truck-driver availability was contributing to freight-rate increases. The company said its Q3 outlook assumes repayment of a $1.0 billion note maturing in September.
Guidance
TJX raised its FY2027 adjusted pre-tax profit-margin outlook to 12.0% to 12.1% and its adjusted diluted EPS outlook to $5.15 to $5.20. The company said these adjusted measures exclude tariff refunds and related incremental compensation expense accruals. TJX also raised its GAAP diluted EPS outlook to $5.31 to $5.36 and its GAAP pre-tax profit-margin outlook to 12.3% to 12.4%.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Units growth, Store Opening Growth | FY2028 | 4.00% | — | New |
| EPS, non-GAAP | FY2027 | $5.15–$5.20 | — | New |
| EPS, GAAP | FY2027 | $5.31–$5.36 | — | New |
| Operating margin, non-GAAP | FY2027 | 12.0%–12.1% | — | New |
| Operating margin, GAAP | FY2027 | 12.3%–12.4% | — | New |
| Revenue growth, Consolidated Comparable Sales | FY2027 | 3.00%–4.00% | — | New |
| EPS, non-GAAP | Q3 FY2027 | $1.30–$1.32 | — | New |
| EPS, GAAP | Q3 FY2027 | $1.36–$1.38 | — | New |
| Operating margin, non-GAAP | Q3 FY2027 | 12.3%–12.4% | — | New |
| Operating margin, GAAP | Q3 FY2027 | 12.8%–12.9% | — | New |
| Revenue growth, Consolidated Comparable Sales | Q3 FY2027 | 2.00%–3.00% | — | New |
| Share repurchases | FY2027 | $2.8 billion–$3.0 billion | — | New |
| Operating margin, Consolidated Adjusted Pre Tax | Q4 FY2027 | 11.9%–12.0% | Q3 FY2027: 12.3%–12.4% | Cut |
| EPS, Consolidated Adjusted Diluted | Q4 FY2027 | $1.44–$1.47 | Q3 FY2027: $1.30–$1.32 | Raised |
| Operating expenses growth, Consolidated Adjusted Sga | FY2027 | 19.5% | — | New |
| Gross margin, Consolidated Adjusted | FY2027 | 31.2%–31.3% | — | New |
| Operating margin, Consolidated Adjusted Pre Tax | FY2027 | 12.0%–12.1% | — | New |
| EPS, Consolidated Adjusted Diluted | FY2027 | $5.15–$5.20 | — | New |
| Revenue | FY2027 | $63.4 billion–$63.8 billion | — | New |
| Gross margin, Consolidated Adjusted | Q3 FY2027 | 32.1%–32.2% | — | New |
| Operating margin, Consolidated Adjusted Pre Tax | Q3 FY2027 | 12.3%–12.4% | — | New |
| EPS, Consolidated Adjusted Diluted | Q3 FY2027 | $1.30–$1.32 | — | New |