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TJX Raises Full-Year Outlook After First Quarter Tops Expectations

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TJX Raises Full-Year Outlook After First Quarter Tops Expectations

TJX (TJX) raised its full-year outlook Wednesday after posting stronger-than-expected fiscal first-quarter results, with comparable sales rising across all segments.

The off-price retailer expects per-share earnings of $5.08 to $5.15 in fiscal 2027, up from its prior forecast of $4.93 to $5.02. The parent of TJ Maxx and Marshalls projects 3% to 4% comparable-sales growth, compared with its earlier 2% to 3% view. Analysts polled by FactSet project EPS of $5.13 and same-store sales growth of 3.4%.

In the quarter ended May 2, EPS rose to $1.19 from $0.92 a year earlier as net sales increased 9% to $14.32 billion. Analysts expected EPS of $1.02 on revenue of $14.02 billion. Comparable sales increased 6%, topping the 4.1% consensus.

"Sales, pretax profit margin, and earnings per share were all well above our plan," CEO Ernie Herrman said in a statement. "All of our divisions delivered strong comparable sales growth and increases in customer transactions."

TJX shares rose 5.5% in Wednesday trading. They have gained 3.5% this year.

The updated full-year outlook assumes that higher fuel costs will persist through 2026, weighing on margins, the company said.

Crude prices have remained elevated since US and Israeli strikes on Iran in late February disrupted shipments through the Strait of Hormuz, a key chokepoint that remains largely shut amid stalled negotiations between Washington and Tehran.

"The second quarter is off to a good start, and we are excited about the initiatives we have planned to keep driving sales and attract consumers to our retail banners," Herrman said.

In the current quarter, the company projected EPS of $1.15 to $1.17 and comparable sales growth of 2% to 3%. Analysts expected EPS of $1.17 and a 3.5% increase in same-store sales.

Price: $158.99, Change: $+8.31, Percent Change: +5.51%

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