If you've been to a TJX store lately—whether it's T.J. Maxx, Marshalls, or HomeGoods—you've probably noticed the parking lot is full. That's not a coincidence. The off-price retailer just reported first-quarter results that blew past Wall Street expectations, and the stock popped nearly 6% on Wednesday.
The numbers tell a clear story: shoppers are hunting for value, and TJX is delivering. Earnings came in at $1.19 per share, well above the $1.01 analysts were looking for. Revenue hit $14.32 billion, up 9% from last year and topping the $14.00 billion consensus. Comparable sales—a key retail metric—rose 6% overall, ahead of the company's own internal forecast.
Dig into the divisions and you see broad-based strength. Marmaxx (the company's biggest segment, which includes T.J. Maxx and Marshalls) posted 6% comp growth. HomeGoods was the star, with 9% growth. TJX Canada rose 7%, and TJX International added 4%. That's not just one division carrying the load; it's across the board.
Margins also looked good. Gross profit margin expanded to 31.3% from 29.5% a year ago, thanks to higher merchandise margins. Pretax profit margin jumped 170 basis points to 12%, also ahead of expectations. The company ended the quarter with $5.6 billion in cash and generated $1.1 billion in operating cash flow. Inventory was $7.7 billion, up from $7.1 billion a year earlier—but that's likely a sign they're stocking up for demand.
TJX also raised its full-year fiscal 2027 GAAP earnings guidance to a range of $5.08 to $5.15 per share, up from $4.93 to $5.02. Analysts were expecting $5.13, so the midpoint is right in line. For the second quarter, the company expects earnings of $1.15 to $1.17 per share, slightly below the $1.18 consensus, but that's partly because they're investing in growth. They're forecasting second-quarter comparable sales growth of 2% to 3% and a pretax profit margin of 11.4% to 11.5%.
Management is also testing new marketing approaches to better connect with consumers and reinforce the value message. Early results are encouraging, they say, and the goal is to attract new customers while getting existing shoppers to visit more often. That's a smart play in an environment where every dollar counts.
On the capital allocation front, TJX raised its planned share repurchases for the year to a range of $2.75 billion to $3.0 billion. That's a big vote of confidence from management. The company also added 48 stores during the quarter, bringing the total to 5,262 locations, and total square footage grew 0.8%.
At the time of publication, TJX shares were up 5.96% at $159.65. The market is clearly rewarding a retailer that's executing well in a challenging environment. For investors, the message is simple: when shoppers are price-conscious, TJX is their go-to—and that's showing up in the numbers.
