FRAMINGHAM, Mass. —TJX Cos. today posted first-quarter earnings and revenue that topped Wall Street’s forecasts, as the off-price retailer continues to attract budget-conscious consumers.
Per-share earnings increased 29% to $1.19 while revenue grew 9% to $14.3 billion. Analysts expected revenue of $14 billion and EPS of $1.02, Reuters reported, citing FactSet.
TJX said same-store sales grew 6%, compared to a 3% gain in the year-earlier period and surpassing expectations of a 4.1% gain.
Comps at its HomeGoods division led all segments with a 9% increase. Comps rose 7% at TJX Canada and 6% at Marmaxx, operator of the TJ Maxx and Marshalls banners.
“The retailer’s treasure-hunt model continues to resonate with the cautious consumer because it gives shoppers permission to trade down without feeling like they are sacrificing quality, while its flexible sourcing model and broad category mix helped drive margin expansion well above plan,” according to Suzy Davidkhanian, principal analyst at Emarketer. “The outsized HomeGoods performance also suggests consumers are still willing to spend on items they may not have planned to buy if the value feels right and the assortment creates that element of surprise and discovery."
CEO Ernie Herrman said the current quarter is off to a strong start.
"Going forward, we are convinced that the flexibility and resiliency of our off-price business model will continue to be a tremendous advantage," said Herrman.
For the full fiscal year 2027, TJX now expects comparable sales growth of 3% to 4%, up from its earlier forecast of 2% to 3%. The company also raised its guidance for diluted EPS to $5.08 to $5.15, compared to the previous range of $4.93 to $5.02. The pretax profit margin outlook was also increased to 11.9% to 12%.
TJX's earnings come as economists and investors worry that consumer spending may weaken under the strains of persistent inflation. So far, consumer spending has remained relatively resilient. Target reported strong financial results today. Home Depot earlier this week noted some pull-back on big-ticket projects but said its core customer has remained “engaged.”
