TJX lifts annual profit outlook after first-quarter sales and earnings beat

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TJX lifts profit outlook Q1

Highlights

TJX Companies reported first-quarter revenue of $14.32 billion (+9.2%) and earnings per share of $1.19 (+29.3%), both above analyst expectations.
Same-store sales rose 6%, exceeding the 4.1% estimate, with Marmaxx and HomeGoods divisions both surpassing analyst forecasts for comparable sales growth.
TJX raised its full-year earnings per share outlook but issued slightly below-consensus guidance for full-year sales and current quarter performance.

First-quarter performance and guidance

TJX Companies said on Wednesday that revenue for the three months ended May 2 rose 9.2% from a year earlier to $14.32 billion, while earnings per share increased 29.3% to $1.19. CNBC reported that both figures topped market expectations, with LSEG consensus estimates at $14.03 billion for revenue and $1.02 for earnings per share.

Same-store sales increased 6%, ahead of the 4.1% analyst estimate cited by FactSet. The retailer also raised its full-year earnings per share outlook, although its full-year sales forecast, along with sales and EPS guidance for the current quarter, came in slightly below consensus expectations.

Shares of TJX were up 6% by midday, rebounding after a difficult stretch in which the stock had fallen more than 10% from its April highs. The latest quarter marks the company’s fifth straight period of sales beats across its four operating divisions, Marmaxx in the U.S., HomeGoods, TJX Canada, and TJX International in Europe and Australia.

Consumer demand and operating momentum

TJX’s off-price model continues to benefit from an environment in which consumers are looking for value and branded goods at lower prices. The company buys excess inventory from brands and retailers at discounts and passes those savings on to shoppers, a strategy that appears to be supporting both spending levels and store traffic.

Comparable sales growth accelerated from 5% in the November-to-January quarter to 6% in the latest period. By division, comparable sales at Marmaxx improved to 6% from 5%, while HomeGoods accelerated to 9% from 6%, with both results exceeding analyst expectations.

Chief Financial Officer John Klinger said on the earnings call that comparable sales growth was driven equally by a higher average basket and an increase in customer transactions. Chief Executive Ernie Herrman said the availability of quality branded merchandise is "off the charts" and added that the current quarter is off to a good start, with multiple initiatives under way to support further sales and traffic growth.

In our earlier analysis of MercadoLibre’s Q1 2026 results, we highlighted a 49% year-over-year revenue jump to $8.85 billion that topped forecasts, alongside margin pressure tied to heavy reinvestment in logistics and fintech expansion. We also noted that the stock was trading below key moving averages, with a breakout above the $1,699 resistance level seen as the main signal for a shift in near-term momentum.

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