The TJX Companies, Inc. — Q2 FY27 Earnings Summary

Financial Performance

• Q2 FY27 net sales reached $15.2 billion, a 5% increase year-over-year (YoY) from $14.4 billion in Q2 FY26.
• Q2 FY27 consolidated comparable sales increased 4% YoY, matching the 4% increase in Q2 FY26.
• Q2 FY27 net income was $1.5 billion, up from $1.2 billion in Q2 FY26.
• Q2 FY27 diluted earnings per share (EPS) were $1.36, a 24% increase YoY from $1.10.
• Q2 FY27 adjusted diluted EPS were $1.22, an 11% increase YoY from $1.10 (excluding a $0.14 net benefit from tariff refunds).
• Pretax profit margin for Q2 FY27 was 13.3%, up 1.9 percentage points YoY from 11.4%.
• Adjusted pretax profit margin for Q2 FY27 was 11.9%, up 0.5 percentage points YoY from 11.4% (excluding a 1.4 percentage point net benefit from tariff refunds).
• Gross profit margin for Q2 FY27 was 33.4%, up 2.7 percentage points YoY from 30.7%.
• Adjusted gross profit margin for Q2 FY27 was 31.4%, up 0.7 percentage points YoY from 30.7% (excluding a 2.0 percentage point net benefit from tariff refunds).
• SG&A costs as a percent of sales for Q2 FY27 were 20.3%, up 0.8 percentage points YoY from 19.5%.
• Adjusted SG&A costs as a percent of sales for Q2 FY27 were 19.7%, up 0.2 percentage points YoY from 19.5% (excluding a 0.6 percentage point negative impact from tariff refund-related compensation accruals).
• Q2 FY27 operating cash flow was $2.2 billion.
• Total inventories as of August 1, 2026, were $7.9 billion, compared to $7.4 billion in Q2 FY26.
• Cash and cash equivalents ended Q2 FY27 at $6.0 billion.
• First half FY27 net sales were $29.5 billion, a 7% increase YoY.
• First half FY27 consolidated comparable sales increased 5% YoY.
• First half FY27 diluted EPS were $2.55, a 26% increase YoY from $2.02.
• First half FY27 adjusted diluted EPS were $2.41, a 19% increase YoY.

Guidance and Future Outlook

• Full-year FY27 consolidated comparable sales guidance remains 3% to 4%.
• Full-year FY27 pretax profit margin guidance increased to 12.3% to 12.4% (excluding an expected 0.3 percentage point net benefit from tariff refunds).
• Full-year FY27 adjusted pretax profit margin guidance increased to 12.0% to 12.1%.
• Full-year FY27 diluted EPS guidance increased to $5.31 to $5.36 (excluding an expected $0.16 net benefit from tariff refunds).
• Full-year FY27 adjusted diluted EPS guidance increased to $5.15 to $5.20.
• Q3 FY27 consolidated comparable sales guidance is 2% to 3%.
• Q3 FY27 pretax profit margin guidance is 12.8% to 12.9%.
• Q3 FY27 adjusted pretax profit margin guidance is 12.3% to 12.4%.
• Q3 FY27 diluted EPS guidance is $1.36 to $1.38.
• Q3 FY27 adjusted diluted EPS guidance is $1.30 to $1.32.
• Beginning in FY28, the company plans to accelerate store opening growth to 4%.
• Long-term global store target increased to 7,500 stores for existing retail banners in current countries.

Business Segments and Product Lines

• Marmaxx (U.S.) comparable sales increased 1% in Q2 FY27 versus 3% in Q2 FY26; net sales were $9.1 billion, up 3% YoY.
• HomeGoods (U.S.) comparable sales increased 7% in Q2 FY27 versus 5% in Q2 FY26; net sales were $2.5 billion, up 10% YoY.
• TJX Canada comparable sales increased 6% in Q2 FY27 versus 9% in Q2 FY26; net sales were $1.5 billion, up 6% YoY (8% on constant currency).
• TJX International (Europe & Australia) comparable sales increased 7% in Q2 FY27 versus 5% in Q2 FY26; net sales were $2.1 billion, up 11% YoY (10% on constant currency).
• The company operates over 5,200 stores across ten countries, including TJ Maxx, Marshalls, HomeGoods, Homesense, and Sierra in the U.S.; Winners, HomeSense, and Marshalls in Canada; TK Maxx and Homesense in Europe; and TK Maxx in Australia.
• Store count increased by 23 stores during Q2 FY27 to a total of 5,285 stores.
• Total square footage increased 0.4% versus the prior quarter to 137.9 million square feet.

Market and Competitive Landscape

• The company describes itself as the leading off-price apparel and home fashions retailer in the U.S. and worldwide.
• Management notes outstanding availability of branded, quality merchandise in the marketplace.
• Foreign currency exchange rates had a one percentage point negative impact on Q2 FY27 net sales growth YoY.
• Foreign currency exchange rates had a neutral impact on first half FY27 net sales growth YoY.

Risks and Challenges

• The amount, timing, and likelihood of additional IEEPA tariff refunds remain uncertain.
• Total refunds received may not equal the full amount of IEEPA-related tariffs paid.
• Additional refunds are subject to further legal, regulatory, or administrative developments.
• Forward-looking statements are subject to risks including execution of buying strategy, inventory management, customer trends, competition, labor costs, international trade policies, currency fluctuations, and economic conditions.

Management Commentary and Tone

• CEO Ernie Herrman expressed pleasure with above-plan consolidated results, noting strong profitability and earnings per share.
• Management highlighted that while Marmaxx sales were below expectations, HomeGoods, TJX Canada, and TJX International delivered 6% to 7% comparable sales increases.
• Management noted improvement at the Marmaxx division to start the third quarter.
• Management stated they are "very confident in the long runway for growth ahead" and excited about opportunities to bring value to more consumers globally.
• Management plans to drive sales and traffic in the upcoming fall and holiday shopping seasons through various initiatives.

Other Key Points

• The company returned $1.3 billion to shareholders in Q2 FY27, including $798 million in share repurchases (5.1 million shares) and $529 million in dividends.
• The company returned $2.4 billion to shareholders in the first half of FY27, including $1.4 billion in share repurchases (8.9 million shares) and $1.0 billion in dividends.
• The company completed the $1.1 billion remaining from the previous stock repurchase program as of January 31, 2026.
• In February 2026, the Board approved a new stock repurchase program authorizing up to an additional $3.0 billion; approximately $2.7 billion was available as of August 1, 2026.
• The company expects to repurchase approximately $2.75 to $3.0 billion of stock during FY27.
• Q2 FY27 included a $331 million aggregate benefit from IEEPA tariff refunds, partially offset by $112 million in accrued incremental compensation expenses, resulting in a net pretax benefit of $219 million.
• Cash dividends declared per share in Q2 FY27 were $0.480, up from $0.425 in Q2 FY26.